Next you need to consider the other methodologies for coming up with the difference.

I am also well versed in Agile methodologies which I feel is underutilized in the real estate industry and will give me an asset to bring to the table with future partners.

HUD determines the guidelines for how the income is qualified, so any lender who underwrites FHA loans must adhere to that methodology.

Also, I fully agree in that you need a "guide" especially in the beginning if you've never done this before.If you want to know more about this and need help, just PM me and if you look at my profile, you'll get a better idea as to my philosophy/ methodology.

Anyone out there followed his methodology and been successful?

Does this methodology sound right?

They all have it's variations and methodology.

@Hadar Orkibi Thanks for the review of the BRRRR methodology.

However, if you have support for the deduction(HUD/closing disclosure) and a proper methodology of allocating cost to the property and land - you should be fine.

You can find a ton of methodologies for determining each but if you're drowning in a haze of acronyms then I'd start with a deal analyzer.