Those landlords had best take some time out to study the law.When a landlord implements standards which are designed to eliminate certain aspects of risk, such as minimum income levels and credit scores, and those standards are equally applied to all applicants it is not discrimination or illegal.

Now depending on how this property was reported in the past, the agreement the two of you made, and possibly other factors this answer can change.

I pay the bills and factor that in their monthly rent.

If you need an S-Crop depends on many factors: FICA wages/income and net profit.LLC doesn't save any taxes in BRRRRR.

Understanding Price "Improvements"In the world of real estate, pricing is a critical factor that influences both the attractiveness and the competitiveness of a property.

As others have pointed out, interest income from a partnership can be classified as either "portfolio income" or "ordinary business income," depending on factors such as the nature of the partnership’s activities, the number of loans, and whether the interest is incidental to your main business or a core activity.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

For every dollar put in, the deal is designed to generate the equity multiple dollars out.

You cannot compare the results, and this is the most important factor, in my opinion. 

Factors like population growth, job market, rental demand, price-to-rent ratio, and local economy are crucial.