LLC income on mortgage app?

[Anonymous]

i make about 60k a year with my 9-5 job regular job.  its nice but i wanted more.  i started getting into real estate.  now, my side job (we all have side jobs lol) is real estate. 

i have three homes that are cash flowing.  they have tenants and they pay rent.  i have an LLC that was formed almost two years ago.  last year i filed my first tax return with the LLC.  this year will be my second tax return for the LLC.  how to mortgage companies look at my LLC income?  do they look at the gross income like they would with my pay check when determining my borrowoing ability? 

for example....if i collect 500 per month in rent per property, thats 1500 per month or 18,000 per year deposited and reported to my LLC as gross revenue.  but after i pay my insurance and taxes and water bill and im down to around 300 per property or 900 per month or 10,800.  if you factor in the reality that some months i dont collect full rents (tenant hardships) vacancy, maintenance, repairs and upgrades, that profit gets really small lol....

will a lender look at my gross revenue and base his calculations off my gross revenue?? in the above example of 18k gross per year after 2 years tax returns and you add to my 60k from my 9-5 job, will the base my borrowing ability off the 78k??

or will they weigh heavily on my deductions and calculate my borrowing power on my net profts because its an LLC?

[StartingOver10]

They use your gross only for the W-2 job you have + the net from the LLC shown on your taxes* (they will add back non-cash deductions such as depreciation). In other words, they won't use the $18k, but the funds available after your rental expenses. 

*You have to be careful when you have an LLC. Some people have loss carry-forwards from the LLC to offset the income from their day job and reduce their taxes. In that case, your gross income would be reduced by the negative cash flow from the LLC. However, in your specific question, it sounds like you have a net positive and not a negative from your LLC. 

[flippy1234]

My "side job" ended up making my income go down, not up on my application because of the deductions I was able to take on my taxes. They got all the info from my two previous years tax returns to calulate the amounts.