Deductions and Debt to Income Ratio

[Byron Broughten]

Hello!

I just closed on my first rental property (house hacking), and after taking a second to bask in the glory, I'm thinking ahead to the next one.

So I ask: if I claim a bunch of deductions (floor refinishing, bath surround, depreciation, paint, etc.) and try to buy another property in a year, might lenders consider the property to be operating at a loss and thus a source of overall debt rather than income, thereby harming my buying power, even if the property would count as a source of income if I didn't claim those deductions?

I would appreciate any insight.