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Updated almost 3 years ago on . Most recent reply

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Garrett Hollenbach
  • Rental Property Investor
  • Salisbury, MD
1
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22
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Do "2nd Homes" affect Debt-to-income ratio?

Garrett Hollenbach
  • Rental Property Investor
  • Salisbury, MD
Posted

Hello BP community, 

Here is my scenario: 

1. I purchase a condo as a "second home" with a 10% downpayment

2. live in it for 2 weeks out of the year (as stated by law where I live)

3. Then rent it as a STR for the remainder of the year and turn a solid profit of 10k.

When I apply for a new loan for my next condo, does the income from the first condo (10k stated above) factor in to my Debt to income ratio? Or, because I purchased it as a "second home" and not an investment property, are those profits, on paper, null and void? 

Thanks! 

  • Garrett Hollenbach
  • Most Popular Reply

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    Brian G.
    • Rental Property Investor
    • Los Angeles, CA
    1,242
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    Brian G.
    • Rental Property Investor
    • Los Angeles, CA
    Replied

    @Shaun Weekes Can't you use the income generated from a 2nd home once it hits your tax returns to positively affect your DTI?

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