We are in the hard money lending business for commercial properties - with loan sizes from $500k to $5 million.  

We do a lot of self employed loans and we can take your investment income in your pre approval.

If you are putting your STR on Sch C and NOT providing substantial services, you will cost yourself money long term and risk the IRS reclasses your activity (which may or may not have consequences).Nonpassive does NOT equal Income from Self Employment automatically. 

For $10/mo I think that is a pretty good deal and convenient for people (especially during NFL season), no matter the size and level of luxury of your unit. 

Now to help with affordability, zoning allows for up to 5 unrelated adults in a unit, but again, as long as reasonable occupancy standards are met for the size of the unit. 

My target purchase price is no more than $410K, aiming for an ARV in the $530K to $570K range.I'm comfortable with small to medium-sized renovations that don't require major structural changes or additional square footage.

I am self-employed so it was a challenge just to get a loan in general, not being a traditional W-2, but that was finally overcome.

Has anyone ever tried to increase the size of a PEMB?

Welcome to the land of self employment

Since this is an FHA Streamline, there is no appraisal, no income verification, no employment verification, no out-of-pocket costs, and nothing rolled into the new loan.