With a conventional residential (1-4 unit) mortgage, typically, 75% of rental income counts towards DTI. 

Just maybe check your numbers before you count the hatched chicks.

Did you accidentally count P&I twice?

One in NYC, which is free and clear, and four rentals in three other states that I bought this year with a mortgage.Tried signing up for a HELOC on my primary and just got the call from the underwriter of the particular credit union I was using that I was rejected because of the mortgages on my outstanding properties.They will not count the rent of a property until it's been on my tax returns for at least two years. 

Luckily I found some great help locally, a Realtor and handyman, but if you don't have these resources I wouldn't count on Hemlane.

Firstly, you haven't provided nearly enough information for anyone to offer an informed response...I think BP'ers just want to see their post count rise sometimes...Anyway, CAP is merely an imaginary return that folks are willing to settle for...and it's pointless to use when valuing a 3-unit residential property....it has zero impact on value or what you should pay for this property. 

I assume it makes sense because when I refinance with the bank they can count that lease towards the debt service.

So after down payment that'd leave me with a 28-32k loan (not counting interest) at around $350/month.

Happy to be corrected but my understanding is that it only effect your score minimally and that all credit pulls within 30 days count as one pull.

@Logan Reinard Could be a good opportunity if the zoning would permit it and you want to be a landlord, but I wouldn’t count on your monthly payments going down because you probably won’t be able to get a 30 year fixed commercial loan.