The income amounts look to be long-term rental (which they are and came in 30% lower than what the STR average did) and 2. why did the appraiser look at homes 20 miles away to compare to when there are PLENTY of rentals in town...

The house I will get is in a lower income area, currently worth $95-100k, and she still owes about $25k on it.

the midwest has lower price points than other areas of the US, sure, but it also comes with its own challenges - for example, very old housing stock, lots of deferred maintenance, and tremendous demand for the best properties."

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

You’ll learn the ropes on how to be a landlord with a lower risk/higher quality tenant-base. 

Alternatively, DSCR loans offer long-term financing with lower rates, but they come with more complex requirements.

The fix/flip might be a good way to get such a relationship started: usually has lower cash out of pocket requirements and you can sell the property faster to recoup the capital invested, plus any profits.

Lenders will lend the lower of the amount between LTC and LTV.Do you require an appraisal and survey?

Lower risk all the way around.  

Lower than that?