I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

These factors minimize your risk and ensure that you have an investment, not just a rental. 

I was worried that the same home would be a competiting comp when it came time to sell but maybe that won't be a factor considering the amount of work we have done. 

But it all really depends on LTV, credit score, and a handful of other factors.

We had factored the cost of the repair into our original offering price and the seller was unwilling to negotiate further.

And even then, i'm not sure this calculator is factoring in the opportunity costs of not earning 10% ROI on the stock market 

Thus conveying any 1 said property to a specific person/entity for utilization but retaining asset in a trust for various factors. 

There also might be other legal/insurance considerations you want to factor in as others have pointed out.

Now depending on how this property was reported in the past, the agreement the two of you made, and possibly other factors this answer can change.

I pay the bills and factor that in their monthly rent.