I am not a tax or legal professional so please take this to someone much more qualified.

The only way they would seriously consider a higher offer from an unqualified buyer is if they have no offers from better qualified buyers and their back is against a wall. 

. $50k sounds like a lot to you but with the price of materials and of qualified labor, it does not go too far.

Made sure to check the ledger and T12 to ensure that the tenant was qualified correctly before purchasing the property.

Some costs MAY qualify as startup costs if the rental rises to a qualifying trade or business level under 195 as well.

As an example, DSCR is based on the DSCR ratio and qualifying Rent to PITI ratio.

Use an agent to help you get qualified tenants and documentation in order.

We have a shortage of qualified applicants and conventional renters, which was created over Covid 19.

If the ARV has risen to $260k and you’re renting it out for $2900/month, you can likely qualify for a higher loan amount.Here are some key points to consider:Loan-to-Value (LTV): A typical DSCR refinance will allow you to borrow up to 75-80% of the property’s ARV, so for a $260k property, you might qualify for a loan of $195k to $208k, which could help pull out most or all of your original investment.Debt Service Coverage Ratio (DSCR): Since you're renting for $2900/month, the loan payment will need to be covered comfortably by that rent.

I have not thought of using DTI instead of 3x the monthly rental amount in order to qualify an applicants income, but you made a great point regarding the priority that tenants might give a car payment.