Hello,We recently bought this 16 bedroom, 4 bathroom motel type room-in boarding house in a low income area in Syracuse.

If expenses are high relative to income, the cash on cash increases when the down payment increases (16k column).

@Matthew Kwan, he is asking why the underwriters will not allow him to use the proposed rental income from the subject property at time of purchase.

Start with one unit or a reliable tenant, then gradually expand.

You can do all the prequalifying from anywhere via credit check, call references, verify income etc.Make sure you have a handy person, ac person, plumber, etc etc that you can call when you need some work done. 

What are some pros that I can highlight from the seller’s perspective.Here are a few that I’ve come up with:1) monthly income at a higher interest rate;2) avoiding a larger tax bill by reducing the purchase price (on paper);3) a promissory note that they could potentially sell down the road.Any other major ones I am missing?

If you can qualify with your income, DTI and employment history, conventional may offer better terms.

From my understanding since it’s a rental property I could use this against my income during tax season.

If you are using an FHA you should be able to use 70% of the potential rent from the other units in the building to count towards your income.

Once you have income hitting your taxes you can refinance and move there.4.