Give me the lowdown on borrowing for income property

[Mike Wallace]

I have a few questions about borrowing money to buy income producing real estate.

I just bought my first house (owner occupied). When I bought my house they take your debt to income/credit score etc to see if you qualify. They have to see if you make enough income to see if you can afford the payments, makes obvious sense.

My question is with income property how do they figure debt to income? Will the bank consider "future rental income" as income?

I have 75k in income that I can show on my tax returns with zero debt besides my home that runs me about 1500 a month, that is including taxes and insurance.

There are a ton of opportunities around me for income houses. My realtor has sent me lists of homes that are for sale for 40-60k that easily rent for $900-1200 monthly. In good working class neighborhoods. If I want to get risky there are shady areas within 20 minutes of me that cost 10k-20k and rent for 600-800 monthly.

If anyone can explain the lending process to me and if you can count "estimated future income" it would be greatly appreciated.

Thanks.