Landlord Question and Answer Forum

Forum / Real Estate Investing / Credit effects

I have mortgages on two properties that I currently rent with a lease w/option to purchase after two years. The property is showing up with my income to debt ratio out of whack. What can I do to stop this drain on my credit? I thought about incorporating but I want to make sure it would benefit me by doing so. Any help would be appreciated. Note: I lost my job and could not sell the house so I did a lease on both properties.

David W, TN on Monday, December 13, 2010

RE: Credit effects

The mortgages are debts which should be showing up. When you refer to your income to debt ratio, are you referring to the credit bureaus' estimates of your income based on your payment activity? Or are you referring to a lender's calculated debt-income ratio? If it's human-calculated, you can have them include your rental income, while if it's calculated by the credit bureaus, they're simply estimating your income based on your credit account activity, and the more you can do to pay down your other debts, the better off you'll be.

Posted by Gregory T, CA on Wednesday, December 15, 2010

Return to the Real Estate Investing Forum

Read related Real Estate Investing Articles

Documents related to this forum

Articles related to this forum

Does Selling Your House FSBO Really Save Money?
Posted January 05, 2018 Reader Rating:
Is it worth turning your house into a Furnished Rental?
Posted January 05, 2018 Reader Rating:
Real Estate Investment and the Trump Effect
Posted February 19, 2017 Reader Rating:
The Accidental Landlord: Should We Try Renting Out Our Old House?
Posted November 14, 2016 Reader Rating:

Highest Rated Discussions
allowable income tax deduction for loss of rent on vacant property Author: ben h, PA Updated: 04/25/2022 Rating:
Charlottesville Real Estate Agent Author: adffe s, Updated: 07/18/2022 Rating:
Funding Options Beyond Mortgage? Author: Harry D, MD Updated: 04/03/2019 Rating:
How can I learn how to start in real estate investing? Author: Carmelo S, KY Updated: 04/03/2019 Rating:
is rental property a good investment Author: dwayne_graves o, FL Updated: 09/18/2019 Rating:

The forum is completely free to anyone! If you wish to post a message, you must log in. If you are not registered already, Join today to create a free account!

Any comments and opinions that are expressed by the users of this forum are solely those of the authors, and have not been reviewed or approved by ezLandlordForms.