You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)

That one and a duplex off market sitting right next to it are right at the edge of a B neighborhood and going into a B-/C+.

Sure, it can be quite a process, but with experience and a growing network, it does become more manageable.Let's go!

New 200 amp circuit panel, Culligan water softner, new washer/dryer, and a deep clean Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I use a separate email dedicated for mortgage business and a PO Box for all investment business mail that I check weekly.

If you are kinda tech savvy and a DIY guy, you could build one yourself.

It likely means you have that amount of coverage when caused by another peril and as mentioned it's typically a significantly lower limit than other coverage amounts.If a pipe bursts, it will likely be covered. 

However, as I mentioned in my original post, my immediate goal is to move out of our current townhouse into a larger single-family home that better suits my family’s needs (we have a baby and a big dog).

And a drain within reach of the standard drain hose?