Offsetting debt service with rental income

[Ryan Keenan]

Hi bp,

Wondering if I'm understanding offsetting piti with rental income correctly.  If you have a rental property that is NOT owner occupied for over two years, and if it cashflows positive the mortgage payment is offset and does not go against your dti and the positive cash flow after your mortgage payment will go towards income? However if you househack a property the entire debt service will go on your dti and you can only count 75 percent of rental income?

Example:

Mortgage 1200

Rents 2300

1200 doesn't go on debt report and 1100 counts as income?

Thanks!