Believe it or not there are still a few "old-school" counties but those are few and far between and the volume is low.

I think I misunderstand DTI for rental incomes.My DTI goes up with a cashflow positive rental ($2000 expense and $3,500 income).

A property manager that can assist with rent collection, tenant screening, maintenance, and run an online ledger for us to track expenses.

Prices are low and they hit the bottom during the real estate crash.

On the lease, he'll pay me $100/m over my HELOC payment and all other expenses, including the refi cost, inspections, title work, etc... 

The low purchase price, combined with an established market demand, made this an ideal transaction for a fast turnaround and profitable outcome.

However, before you do so you should ensure that your revenue from rental income covers ALL your property expenses in the townhome, including mortgage, taxes, insurance, maintenance/repairs, vacancy, property management, etc...

Other than a few regular maintenance and wear & tear, we have had minimal expenses.

Any leftover gain is taxable.The $150K left after paying off expenses isn't directly taxed.

Soon after, mold was found in one of the self-storage units, requiring expensive remediation.