I’ve been through this several times. A lot depends on the specific lender but here are the basics.

1. All lenders factor in something for vacancies and repairs when calculating your rent income. My lenders count 80% of the rent as income, some lenders only 75%. At 80% a lender would say you’ve got $800 income per month, a $1,000 payment, so you’d have a net loss of $200 per month.

2. Some lenders require a history of rent for a property before they’ll count it as income. Some require a year, some 2 years. The reason for this is to substantiate your claim of $1,000 a month rental income. In other words, what’s to stop you from saying it’s $1,000 a month when it’s really $600?

When you apply for a mortgage on a second property and intend to use the first home as an investment you are able to duse that as income. Most banks will give you 75% of what your rent is as usable income. That 75% will be added to your income and you can offset that against your debt If you have any other questions just email me

You are actually not charging enough. You are only allowed to take 75% of your rental income, so it is not a wash.

you would do the latter on the mortgage application. the 1000 dollar rent you are collecting would be income (and therefore taxable), and the 1000 mortgage payment is a debt (liability).