It could BENEFIT you if you currently CAN'T use your rental losses and you're deducting items like a home office or part of cell phone ect, you can shift those to a non-passive business where they can generate a usable loss potentially. 

.:)https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf 

There seems to be some good deals in this area and is an eligible area for Section 8 housing as well.

And still get deductions because of no 401k? 

I wasn't sure if we'd be able to deduct all the improvement expenses from our profits if it's in our own names-

I wasn't sure if we'd be able to deduct all the improvement expenses from our profits if it's in our own names-

I have not furnished this information up front, other than to say generically it is the original deposit + interest (NJ law) - deductions. 

Also realize, you get a tax deduction for any interest you pay, making your Real cost of the interest 25-35% less.With a zero % interest loan there is NO benefit to making extra principle payments....you’re needlessly paying back money that has zero cost, saving you nothing.

How are lenders/ banks calculating your eligibility to refi and investment property?

Page 269 of the FMSG will eliminate eligibility for a fair number of these inexpensive properties.