HELP!!!Depreciation for Tax Report!!!

[Joon Lee]

This is my second year having rental properties. I depreciate rental last year. Do you depreciate the rental property every year?

if so, my net income of rental property is very small. I am trying to get new loan and lender told me they look at my rental income. I dont have whole lot of expenses for rental properties.... just few maintenance stuff. However, when I put depreciation for each rental, net income decrease a lot. 

Do lender see net income after depreciation and expenses or net income before depreciation and expenses? 

HELP!!!! Do anyone answer this for me??