The percentage of your debt after you purchase your rental property, again assuming a breakeven cashflow because you're a Bigger Pockets and have found a deal, is 40%.When you start out with your debt to income ratio at 40%, without considering any negative cashflow payment on your new purchase.The two conforming lenders (Fannie Mae and Freddie Mac) want at total housing debt to income ratio of 36% housing and total overall ratios combined of 40%, but will go to 44% if everything else is in line.

While we paid cash for the property, we were unaware that we couldn’t refinance the property for 6 months after closing (at least not with Fannie Mae).

I understand rental income will only count 75% because of Fannie Mae underwriting.

I knew I wanted to look into foreclosures/REO's, and the first website I went to was Fannie Mae's Homepath website.

Fannie Mae, Freddie Mac, VA, FHA will all loan on these properties. 

Fannie Mae will only allow you to have a total of 4 properties including your primary residence in your name.

I've heard Fannie Mae is getting more strict on investors using FHA loans to build a portfolio.

Lee V,I am only allowed to have the 4 properties on my credit report b/c on Fannie Mae/Mac.

Ex: https://www.biggerpockets.com/renewsblog/becoming-a-landlord-the-easy-way/Every lender in my state of IL has said that their rules for Fannie Mae do not allow you to count potential earnings on the rental to qualify.

That, in part, is why Fannie Mae is ok with 90% LTV and a non-investor interest rate: your other sources of income must be able to support both your primary housing, and the second home, so it's not as risky as my trademarked little "unemployed spouses with minimal consumer debt in their name qualifying based purely on rental income" thing to let a married REI get from Fannie's normal cap of 10, to 20.