Question about qualifying for a mortgage
Hey guys,
So I was talking to my mortgage broker today and he said that my debt to income ratio will be better if I sell my paid off property.
Its rented and brings in $550 per month in rent minus taxes/insurance, so I net about $500 per month.
He said that on my taxes it shows as negative income of $130 or something like that.
May be because of depreciation?
How is it possible that paid off rental that brings in 5K per year is negatively affecting my debt to income ratio?
Thank you