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Tax Question - Another house
I have 2 houses, the mortgage on them is $5k , the first one is a rental and the second is owner occupied but i also rent out the rooms.
I want to know about income / debt ratios and tax. I want to buy a 3rd house to live in and make the first 2 investment. The bank will let me borrow but my debt income ratio should be less than 45% so is this math right..
1) The mortgages on both house is $5 PITI and the rental income covers that.. so on this $5 does that mean i dont have to pay any taxes since it is mortgage?
2) and than on top of that $5 , i want to buy a $430k house so does that mean i have to make $10k per month on top of the $5k? so $15k per month to qualify? and I only ahve to pay tax on the $10k right because the $5k is for the mortgage?
how does it work?