Financing question …dti after next purchase

[Nick Loukas]

I'm approved for my next rental purchase (second investment prop). How can I get approved for my third property if the banks typically require that I have a leased property for two years on my taxes to offset the loan amount for my DTI? If they won't count the income from the second rental, this won't offset my PITI on that property. Am I missing something? How do you guys scale quickly with this conventional loan caveat ? Thanks !

[Kristen L Garner]

Hey Nick,  Most lenders have programs that allow you to provide an active lease and two months of canceled rent checks (or proof of auto deposit in your bank account), even if your property is new and has yet to be filed in your taxes. Then, 75% of that is counted as income.