When applying for a mortgage to buy a rental property, does the bank take into the account the income you'll make from the property when deciding how much they'll loan you?
I've been looking around at 3 and 4 flat buildings, with the idea that I would live in one of the units for a while. Assuming that with a 10-20% down payment, the mortgage/taxes/insurance would be 100% or almost covered by the income from the other units. Would a bank loan me 5 or 10 times my gross annual income from my regular job? Or is that way out there and wouldn't happen? I guess the biggest risk for them, and me, would be if there were a few months without tenants and I had trouble covering the whole thing myself.