You can typically count 75% of the previous rental income (from the units you will not live in) toward your qualifying income.

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

I’m a high income W2 earner getting hosed on taxes (currently own 5 properties).

Debt to Income Ratio will be used for more conventional types of financing (Fannie/Freddie).

There are several things that come into play with determining if a property sale is capital gains or ordinary income. 

An IRA would pay a small tax on such unrelated debt-financed income.

I am looking to rent and hold (purchase a rental income property).

It is more complex and has added requirements such as a formal set of books just like a corporation. 

LLC Taxation for FlippingSince you’re flipping the property in under 12 months, the IRS usually treats it as ordinary income because it’s considered a business activity, not a long-term investment.

I've used Prime Corporate Services (www.primecorporateservices.com) to create LLCs and also Wyoming LLC Attorney (wyomingllcattorney.com).