We did a major rehab on a 1400sf home in Wilton Manors (excluding windows) for around $55k.

My question regards how the lender is calculating income in the debt-to-income ratio based on the existence of the partnership.)If we treat the partnership as a standard business, our DTI is unfavorable:Net rental income: $7600Other income:        $3000Total:                   $10600Debt:                    $ 6000DTI: 57%A DTI of 57% is above their limit.However, since Net Rental Income excludes $1000 monthly depreciation (non-cash expense) and $2,400 interest expense (part of the proposed debt), we were initially told that they would add back depreciation and interest expense, leading to a monthly income of $14,000, and a debt-to-income ratio of 43%, and that DTI would pass muster.The loan went to underwriting on that basis, but underwriting decided that they couldn't add back depreciation and interest expense, since it's a K-1.

Under some state laws, which vary by state, a real estate broker may be entitled to a commission as a procuring cause of a sale if the broker brought the purchaser and seller together and brought about a sale through continuous negotiations initiated by him, unless the seller and buyer intentionally exclude the broker."

With gross rents at $2,075 and all expenses (including vacancy but excluding PM and mortgage) at 50%, you are looking at a monthly cash flow of $1,038.If it is true that your mortgage payment is $649, then your NOI-before tax is $388 not including storage income.

One of you will be granting their interest in the property to the other unless you agree to exclude the property and retain the joint relationship which is pretty rare.

Title insurance would exclude or require the curing of those found defects. 

you are at $524 monthly (excluding debt service) which is only 36%.

My assumed expenses, excluding the mortgage, is slightly under 50%.  

I'm eager to get home in fact to do some more research on it.Whatever you decide, just keep yours eyes open and don't think that you have to exclude buy and hold just because the market doesn't look great for it. 

Although, my financials would probably exclude me to only very small investments, and what personal exposure I have had with development, it has a longer return time.