Investment Loan affect on DTI??

[Ethan Kohler]

Although one can have up to 10 conventional mortgages, how does each one affect the next in terms of DTI? For instance, if I get a mortgage on an investment property (traditional or BRRR to refi), will I likely qualify for less than I currently would on my next deal or even my primary residence purchase? Would a few investment property loans make it more difficult to get approved for my next home loan, or does it not negatively affect my ability to get another loan if its a cash-flowing asset? Appreciate any thoughts.

[Robin Simon]

Quote from @Ethan Kohler:

Although one can have up to 10 conventional mortgages, how does each one affect the next in terms of DTI? For instance, if I get a mortgage on an investment property (traditional or BRRR to refi), will I likely qualify for less than I currently would on my next deal or even my primary residence purchase? Would a few investment property loans make it more difficult to get approved for my next home loan, or does it not negatively affect my ability to get another loan if its a cash-flowing asset? Appreciate any thoughts.

Yes - the more properties you keep piling up, the more stretched and complicated the DTI calculation becomes. This is why most investors switch to "DSCR" loans one they hit around property #5 - since there is no DTI required for qualification, its purely based on the asset's cash flow potential