Including the Statement of Cash Flows.  

Did they previous take on bridge debt and has that caused them undo "pain" in the recent years?

It's expected and common for MTRs to have utilities included.

FHA is easier to qualify for and allows for higher debt to income.If you have not spoken to your lender already, you should also just look into the HomeStyle Renovation loan.

It should detail any liens or subordinate agreements, including the unpaid balance.

I did run the numbers and it seems I'd be accruing more debt with higher mortgage than currently.

We try hard to follow the regulations, including the Dodd Frank Act.

I  Income:  The amount of property you can buy will be dependent on your Debt to Income ratio.  

Treat this property as a business and factor in all the associated expenses, including mortgage payments (if you pull a loan), maintenance, and potential vacancy periods.To simplify management and make this less of a hands-on job, I’d strongly recommend working with a property management company.

Having a lease in place will help you as well - some lenders won't refi a vacant property.For your refi, you're usually looking at 75-80% max LTV with a debt service loan.