debt to income thresholds for 75ltv

[Jackson Long]

I am sure this varies by lender- but looking for some sort of rule of thumb.  Assume the sole source of income is rental.  I buy a 100k house with 25k down and generates 10k income.  How many of these could I buy before I am over the threshold of too much debt?  Are there other factors?

Again- not looking for the hard and fast works for all vendors and all situations and all credit scores etc...  Just want a sense of how it works and scales.

[Michaela G.]

Originally posted by :

 I've rarely heard of having "too much debt".  

Well, the banks/mortgage companies only count 75% of the rental income, so, you can have positive cashflow on all of your rentals, but unless it's always at least 25% above your payments, you may end up having too much debt as far as the bank is concerned.