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).

I'm not sure why "within the unit" is not being interpreted to include the balcony.

True, but (a) they were typically experienced investors, and (b) today's market includes record prices and high mortgage rates, which is a double whammy. 

I own a property management company in WA, including Yakima.Here’s a rough breakdown of costs:- Management: 15-30% of revenue- Cleaning: $100-$200 per turnover- Utilities: $150-$300/month- Maintenance: 5-10% of revenue- Insurance: $1,500-$3,000/yearTools like AirDNA or Mashvisor can give you a solid idea of income and occupancy.

I pay $875 (including principal, interest, taxes, and insurance) and rent it out for $1,625.

Quote from @Caleb Brown: Someone else asked but what would market rents be including the extra storage?

On the lease, he'll pay me $100/m over my HELOC payment and all other expenses, including the refi cost, inspections, title work, etc... 

@Jonathan B.Assuming you pass the "material participation" test for 2023 and did not use the property yourself (or used very little), you should be able to treat it as an STR for 2023, including bonus depreciation.  

Worth is the DFW Real Estate Investors Club...normally 2-3 hours including breakfast. 

One approach that I have not seen included in the discussion is as you are still in the planning phase, you could change your approach and the facts to make it more favorable for your strategy.