Of course, that is what BP Nation is for, to teach members that gurus are liers and thieves and most, if not all of the info can be learned right here for free, excluding actual field experience of course.

Rental income is specifically excluded from UBIT.

Anyways, I went through their prequal procedures and was granted their approval letter but they are requiring me to put 20% down instead of the 10% that I have already been approved for by a different lender.Due to the nature of my current employment they were excluding some of my annual salary even though I have been receiving it for the past 6 years and have no indication of not continuing in the future.

Just because it spends more that it takes in does NOT mean that we exclude those excess purchases from the GDP calculation.Some economic theories suggest that accumulated debt can have a feedback effect on consumers and businesses who anticipate higher future taxes and curb their current purchases.Further discussion of this topic is way too involved for a bulletin board.

That way you will still qualify to exclude most of the capital gains on your sale.Just my .02 :-)

Since House A is covering the entire new mortgage payment should I exclude any mortgage amount when doing my analysis for House B which I have not yet purchased?

For subs being excluded, it is a licensing detail, because the manufacturers license licensed contractors as distributors (not easy usually), and I have never known a sub to be licensed.

Check the CC&Rs too, they may exclude home businesses.

In general, UDFI is income (including the passive types of income normally excluded from UBTI) derived from debt-financed assets. 

Mine are all roughly in the same price range as OP from 100-175k, but consistently the expense ratio (excluding financing) is usually more like 30-35% of rent, with the only estimated components being repairs (I budget a fixed $600/year per property, and I use a vacancy rate of 4%) But including taxes, hoa, property mgmt, vacancy, repairs, insurance, advertising costs for turnover all the properties are in this narrow range.I know my NOI targets tend to be less agressive than full time RE investors, but I'm pretty happy with properties that hit close to 7% cap rate.