The formula is simple and is as follows, 75% of gross rent - PITI = net rental income.If net rental income is positive its added to your total income and improves your purchasing power.If net rental income is negative then its considered a liability similar to a credit card or a car loan that you gotta qualify for.Some banks have "overlays," or additional requirements they place on top of borrowers when you have rapid acquisitions of multiple properties but by no means is 2 properties in one year considered "rapid," by most lenders, however 3-5 would be its an underwriter and case by case bank "call," to make. 

The unit is a 1600 sqft, 4 bed, 2 1/2 bath, 2-story condo with 2 car detached garage in Orange County, CA. 

I see #3 leaving in his car, the chainsaw is on the ground and #1 is nowhere to be found. 

I’ve been told by a tenant that everyone uses the water hose to fill up portable pools,wash their vehicles,spray the sidewalk and driveway.When my lease clearly states NO CAR WASHING on property.

It might be able to be done without even losing a bedroom, but even if it goes from 4 bed 2 bath to a unit with 2/1 and a 1/1 unit, the rental income (or sale price) should be higher than a 4/2 SFR in the area.That said I'm not sure if there's something I may be overlooking.It already has 2 exterior doors positioned nicely with separate porches and room to have cars parked on different sides of the house (it's on a street corner).I looked up the zoning regs for how the plot is classified and it is allowed by right (don't need to apply special allowances or rezoning) to have multi-family housing on the plot.The rehab would already have it gutted enough that the changes to plumbing and electrical would be easier.I don't have any idea how hard it is to get separate metering for water/gas/electric. 

I'd recommend no credit card balances, no car payments, etc.

I not have a 15 yr mortgage which is my only debt outside of my car payment.  

I currently make just over six figures annually with my only expenses being a car and (soon to be paid off) student loans.

It's one I'll have to listen to again when I'm not in the car so I can take notes.  

Promotion to outside sales at my day job and most of my expenses are covered by renting other side (Tenant moves in next week) and company paying my car etc..