I would also check your lease to see if you have a clause about extended house guests needing to pass the background check, be approved and be added to the lease or leave the property.

I would look at this as two separate analysis':1 - The initial analysis that got you the $10k from the Cash out Refi2 - The re-investment of the $10k cash you got out.What you are looking to do then, based on your last sentence, is compare the return on the investment of that 10k:1 - Reinvest it back into the same property2 - Invest it as a DP in the next propertyMy guess is the greater return will be from the next property since you will be adding to both your total cash flow and new property value, and since the new property value will be at a 5 to 1 ratio, I'd say (know) the new investment wins. 

Also, LLC's only pay taxes on their profits where as if I personally report my rental income for the year it will be added to my income and push me into a higher tax bracket causing me to pay even more in Taxes.My mortgage is about $1,500 per month, and I collect $550 x 2 (renting two rooms), that's $1,100 in monthly income, my GF and I split the difference and then utilities are split between the 4 of us all (usually between $75-$100 per month).

This $250 should be added to your DTI ratio allowing you to have more purchasing power, but it doesn't.If I am wrong, or you know someone who is a lender and does it the 2nd scenario (like I think they should), please send me the contact information...haha.Thanks,Matt

One thing we do a lot of (and help people do) is finding single family homes where a mother-in-law suite can be added and both units can be rented out.

Or would the full PITIA be added to the debt portion in the DTI calculation since I’ve had the property for less than 2 years? 

The remaining balance if I do not pay it will be added to my property tax bill.

What should be added/removed.

We can't record an expense for forgiving income that was to be collected.If the original poster charged a late fee and collected the late fee, the amount collected would be added to rental income.If the original poster cancels the late fee, the rental income does not increase since no income was collected.It is a different scenario if we are talking about a large business that is on the accrual method, collects a receivable and then determines that the amount is a bad debt. 

Or is it the opposite (which would not be ideal) it just means residential and nothing can be added or modified without some-sort of expressed county approval...