I didn't know about conventional not counting boarder income for non-serviced properties.

generally a roof doesn't count as egress.

He is a family friend and we have even looked at some off market for sale by seller too that I identified stuff where he wouldn’t even earn a commission and he was happy to investigate for me - more of a looking out for me / family than counting a check (I am not looking for expensive real estate and he has owns the brokerage of 20+ agents, unfortunately my purchase isn’t much of a profit opportunity for the office but would probably be more embarrassing on him if we get something wrong  😂) Noted on the inspection though and I will stipulate it is a deal breaker on my side.

My wife and I have been surprised to see that we've been able to raise the rents on our MTRs much higher than we expected, but we had not counted on that to be profitable.

Unit count in the low 300s. 

That is several thousand in rent gained right there and they is not even counting the cost you would incur with each turnover.

Last month she paid the rent seven days late and this month she is ten days late and counting.

So you don't want to count on it at all for the short term.

However, if this total income number is negative it will count against you like any other liability would (think car loan or other mortgages with no rental income or credit card min monthly payments/etc) against your DTI.DTI is typically maxed out around 45-50%, so half of your monthly figure so if you make 10,000 gross per month your max liability at @50% DTI is 5000 a month max payment.

For a new developer with no experience, I would count on having to have 25% of total project cost (if land is 150k and cost to build is 350k, total project cost is 500k so expect to put down 125k).