These programs are much more lenient and allow Alternative income streams to qualify such as: Liquid Asset calculations for incomeBusiness Bank DepositsPersonal Bank Deposits Expected Income New Employment income1099 IncomeCommissions & BonusesAccount ReceivablesNote Receivables Contracts for future incomeNew Rental IncomeExpected Rental Income from property planning to rentConsiderably different calculations on Tax returns 

I am also an engineer (mechanical) looking to generate a passive income stream to supplement my day job.

Hey John,I think you bring up some great questions and points.On 1 hand, you want to start investing and creating another stream of income, on the other being an agent won't get you the loan you need. 

Once paid off they will be nice income streams.

While this allowed me to self-fund my education, it didn't provide me with the passive income stream necessary to exit the 'rat race' which is why I'm here today. 

Equity does not increase cash flow it creates a separate income stream on the property that reduces the cash flow on the property itself.

I'm new to real estate investing and my main purpose for getting involve is having a cash flowing stream of income that will eventually replace my current 9-5.

What would you do in this industry if you lost your stream of regular income, but were sitting on $15,000?

Definitely consult with your CPA about this as you may have specific situations that didn't come up in your post.Generally, there is an advantage to running businesses like property management or wholesaling through an LLC taxed as an S-Corp, as it can save you social security taxes (your CPA can run the numbers for you along with a more comprehensive tax plan).However, it's usually a bad idea to hold rental property in an S-Corp, so you probably wouldn't want these two revenue streams (rental and wholesaling) running through the same entity.Let me know if you have any questions!

Also, if you can provide a cleaning person or  company with an assured stream of business, you can certainly negotiate better rates.