Thank you and have yourself a great week. Good luck!
You definitely need to talk with a mortgage banker or mortgage broker first. My understanding is if you have not had rental/property management experience or income for a minimum of 2 years then lenders are not likely to consider even 75% of the income against your debt to income ratio. I have 12 investments, in Florida, i have a couple with mortgages, and i have been doing this for a decade, so i am pretty up to date on borrowing against a rental but if I a wrong, please let me know the lender to u find to work with you because i could give them tons of business.
Reserves required will be another important issue which will depend on how much equity the proposed rental home has.
If I can be of assistance, please let me know.
The lender I would STRONGLY recommend is Patrick Hernandez with Guild Mortgage http://www.truezerodown.com -- he will chat with you and prequalify with with no obligation so you can start preparing now.
Best of luck to you!
Jean Bradford, SFR,CRS
Managing Broker Associate
John L. Scott