Posted by Tim (Atlanta) on January 26, 1999 at 10:50:14:
The answer is it depends. Is the financing for your two properties in your name ? These would certainly show up on a credit report. If these are owner financed, do these properties appear on your tax returns ? If they do, you will have to list them when you apply.
Most lenders will count around 75% of the rental income as ordinary income. If the total of the monthly expenses including the rentals divided by your total monthly income is greater than their allowed ratio, the credit may be denied. For conventional financing, the ratio is generally topped out at 45%.
So as you can see, the flips you have done will affect your ability to secure financing, but they may not exclude you from getting financing. It will depend on your individual situation. Talk it over with a reliable mortgage broker.