Rental income gives me negative cash flow
My loan is under examination with a lender and they are looking at my existing rental income as part of computing my DTI. One of my rentals gives me $3200 monthly but my tax filing shows a negative cash flow of $120 a month. How can my other rentals be counted as income? by gordonjcp177 from Los Angeles, California. Dec 20th 2021
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
For existing properties, we don't care what you actually collect, we care what your tax return says you collect minus write-offs. For brand new purchases in the first year, we use 75% of actual rent. "Normal" write offs usually don't hurt you, while major right offs, like maybe you just completely renovated the property can temporarily hurt you. Give them the documents that ask for, and for there it is what it is... Talk to a local mortgage broker in your area. I lend in MN WI IA ND SD. I can be found at JoeMetzler.com - Cambria Mortgage, NMLS 274132
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