How do you calculate applicant's monthly income after expenses?

[Nicholas Jose]

Good afternoon, BP.

Let's say you want an applicant's monthly income to be at least 3X the monthly rent. A) If the applicant is an employee, would you just subtract the average expenses found on the bank statements from the average income found on the pay stubs? B) If the applicant is self-employed, would you subtract the average expenses found on the bank statement from the average income on the 4506-T?