For further context, the borrower would be able to comfortably afford the mortgage with the rental income but not without it completely.I understand that potential rental income from the property may be considered for a loan amount, but I’m not sure how potential income affects the liquid amount that lenders want to see when issuing a loan.

Not that that is everything but it certainly does generally affect the rental rates for properties as well as the sale price.  

Credit scores are based on a variety of things, mortgages being one.What will happen, if she misses a payment, is that will affect your credit.

Michael, if the purchase was facilitated by a wholesaler, how would this affect the way we go after the actual seller?

However, the BRRRR strategy (buy, rehab, rent, refinance, repeat) makes sense for a lot of investors, as value can be created through forced appreciation (renovations) and capital recycled through cash-out refinances.

This can create challenges because the rental income might not be recognized in the same way, affecting the DSCR calculation.

interesting comments, thank you....to quote a person, if you think education is expensive, try ignorance and mistakes. in real estate,there is no bottom and no ceiling to mistakes and earnings, you can make and loose millions to billions, even grant cardone has lost it all which he has admitted repeatedly.

You asked about a property you have listed for sale and property taxes that are coming due and the consequences of not paying them until the property sells.Generally, the local taxing authority will impose an interest penalty on any unpaid balance after the due date with a long grace period before you would have to worry about unpaid property taxes affecting your ownership of the property or your ability to sell.In all likelihood, the property taxes will become a part of the closing and will be deducted from your proceeds at the time of sale.By the way, property taxes are always in first lien position ahead of any other debts like mortgages.

Repeat as needed.  

Wanting to scale quickly I've thought about doing a cash out refinance on the investment property after about a year and using that cash to pay off the HELOC then using the HELOC once again to get in the next property (rinse and repeat).