We use a YTD paystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make sure they’ll always be able to pay the rent on time.

Also, you can depreciate 1/2 of the property, corresponding to the rental unit.And you cannot deduct losses from the rental unit since your income is too high.

You will have to skip trace the members, but the RA must have a physical address in the state to receive legal documents and correspondence.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Also, if it needs TLC (but structurally sound - be sure to have it inspected), all the better, as you may use "sweat equity" (if you or friends / partner have skills) to renovate, maximize rental value & correspondingly appreciation. 

Or you can pull up the Marcus & Millichap reports and find the cap rates for the corresponding class properties in Houston and add about 25 to 50 basis points.

@James McQuirter a bit of corresponding advice; make sure that when it’s put in they don’t use galvanized steel piping and instead use something like copper, which will be a minimal increase in cost.

Theoretically if the FED were to reduce rates in each of the next three quarters, we could see a .75-1.5% reduction in the FED FUNDS rate and correspondingly conventional mortgage rates in the 5%'s on a 30 year fixed and potentially a 4%'s handle on shorter duration (15-20 year) primary, AAA conforming borrower's. 

I am happy to correspond and share whatever else I might be able to offer.