In other words, they are going to take 75% of each rental property's rental income, subtract the PITI payment from that, and then add what's left to your income (or to your debt if it's negative). 

I’m comfortable buying a 2% property if rent ready, subtract the conservative 100k and I think at 400k these would cash flow and be a good investment.

Find out what the value is based on actual performance and subtract the deferred maintenance on the property.I would not forget about it.  

Management fee is an operating expense and subtracted from gross income to derive NOI.Gino

Market rent - 50% , then subtract loan payment using prevailing interest rate for your size of loan (i.e. jumbo). 

Subtract the Rehab estimate and Holding/Closing costs (using $10K for this example).  

But if I hire him to do the work then the $100 is subtracted from the final payment.

It will show what the market rents for your place should be, at that point the lender will take the market rents, subtract 25% and then subtract the PITI of the loan.

If you subtract that from your rental income your property itself is probably negative cash flow.

@Chris - I think I understand what you say, but why would they subtract rather than add 1 day of interest?