@Ali Mol In a lease-to-own agreement, the $1,666 monthly credit should be treated as a liability (deferred credit) rather than rental income, as it is allocated toward the purchase price.

When getting a DSCR loan whose credit score is the lender going to use?

If the former, note per Union City Rent Stabilization ordinance (https://ecode360.com/15397000 is a slightly outdated version), "the terms of this chapter apply to individual dwelling units within a building, including condominium or cooperative units in the process of being converted, or having been converted".

When we have a tenant that is cooperative and informs us in a timely manner, we prorate the monthly rent but charge them the increase also.

STR standard depreciation is 39 years @Andy Lanyi@Jonathan Cooper even if you take Bonus Depreciation as @Basit Siddiqi highlighted the remainder 40% will be prorated using the Half-year convention or Mid-quarter convention used in line with what you read in IRS Pub 946 

Does anyone utilize a line of credit as an emergency fund?

But after working with the family, we purchased it for $42,000 and got to work.We had some unique challenges, like dealing with one of the heirs who wasn’t very cooperative and required a payoff to sign the paperwork we needed for clear title.

I do not use Rent Ready, but I know that it is a perk of my pro membership here and I am considering setting it up to help my tenant establish credit. 

I do this to ensure they understand the cleanliness and cooperation is key to this model working for them and myself.

This process can take a couple of months if the tenants are cooperative, but will likely take 6+ months and possibly over a year.Do you know if the tenants for the subject property are cash tenants or program/voucher recipients?