Schedule k-1 and DTI
I have 3 rental properties, 2 of which are under an LLC with a friend..the other joint with my wife. My question is how does my K-1(partnership income) effect my dti.
The main problem I have is the K-1 is total net income from business so it will show improvement costs to my property as being written against our revenue(i have small net gain). So in my situation would they take my k-1 or take my rental income - PITI to count towards my dti(good positive cashflow).