So, few days ago, I received a notice that the application is denied.

You didn't mention it but hotel would be deductible as well.People always look at us funny when we are in a store checkout. 

It’s is much more analogous to the large department store having a premium brand running a dedicated area with their own expert staff- which is exactly what they do.Look at the various “make up” counters in any mall anchor department store.

When you apply for conventional financing on the next property, one of the questions you will be asked is, "Are there any debt obligations that you are responsible for that are not disclosed in this application?"

The Howey test is still somewhat applicable for determining if the sale of a business interest is a security or a business opportunity .  

Read the books on flipping - (BP book store) before you come here and ask more questions as you should.

Screen applications?

I am working on applications for 3 college students. 

But you should be gathering emails just from bookings that your PMS stores, then you don't have to worry about getting the kids emails etc.

To qualify, the income from the property will need to be equal to or greater than the monthly principal, interest, taxes, insurance and HOA (where applicable).