My wife and I have obtained three traditional loans and one lease with the option to purchase, resulting in most banks turning us down based on debt to income (non-portfolio lenders). 

If you buy a hot water heater for the other unit, you can write off 100% because you have no personal use of that hot water heater. etc.

No. 99.967% of the time it will be a big fat "no".So to everyone debating the effectiveness of a software, you need to realize what the scope of the software is.Software will return DATA, based on your filtering.

Or if you are able to connect to public water &  sewer, this would make the investment much easier.

So you would spend around $25-$30k a month (this was 15 years ago) on police details and require union gate and non union gate if you had non union workforce as well.In DC area, the utility providers are a huge challenge, whether getting permanent power, or water/sewer service etc - good luck.

Avoid basing it on uncontrollable factors like taxes or insurance.

I agree with Nathan (don't forget to price running extra water, sewer and electrical lines).  

The licensed plumbers do not get permits for water heaters, I have never heard of one being red tagged solely for not having a permit so I do not get permits (and know no one that does) for swapping a water heater.  

Remodeling, painting, carpet, flooring, light or water fixtures - sure, I'm good with that.

Quote from @Cosmo DePinto: When applying for a DSCR loan, can you base the rent off a section 8 tenant?