Debt/Income Ratio Question
I'm in the process of purchasing my first property. It is currently a rental property that rents for $1400/month. My current plan is to buy the property and occupy it myself for the next 6-18 months. It could use some updating and I don't want to enter into a lease while I could be building equity.
My question relates to debt to income ratio and getting approved for multiple properties. I'll be in a position to rent this property in 6-18 months. While I'm looking for renters, I'll concurrently be looking for another property. I'm assuming the debt, or mortgage, from this property will be counted against me as I am getting approved for another property. My fear is that my debt to income ratio will be too high for the type of property I would be looking for. In fact, it may be too high to get approved at all.
I'm looking for some insight from anyone that owns, or has owned, multiple properties on how to make that jump from property 1 to property 2 outside of a cash deal for property 2.
Thanks for your time and insight!
Roddy