This credit amounts to $1,666 per month, with the monthly rent set at $3,300.From an accounting perspective, should the $1,666 per month be treated as a liability (deferred credit) and excluded from income, or should it be recognized as income and then applied as a credit at closing?

Think of it when those with a lot of experience go to buy apartment buildings what do they want to see..  2 to 3 years of tax returns and rent rolls they want to get a true picture.. not just how did it do for 6 months on a freshly turned unit.. now you will have low value assets were tenants will move in and quit paying 4 to 6 months in that happens.. but generally they make it the first year.. but what damage did they do.. how much is the turn over.. usually 1 to 2k for turn over plus a month rent.. and plus a month down doing your turn over.. so until you account for this happening 2 or 3 times over the course of a few years you will never know your true numbers.Although like with anything you can get very lucky and get a neat and clean tenant that stays 3 years never causes any damage etc. 

4) If yes to #3, then may I have the link for such a information from a Limited Partner (investor) perspective?

Hi Wilson Lau, Thanks for the information and your perspective.

Another old buddy in San Antonio picked up a modest fourplex a few years back, and while it never turned into a headline-worthy success, those steady rent checks stacked up over time as local employers brought in fresh workers.

Most of the time they are young 20s and fresh out of college and never owned a pierce of real estate.

Everything is about DSCR from a banks perspective nowadays. 

I appreciate the perspective.

All appliances need updating as well as a fresh coat of paint and new flooring.

My gut says I need to cut off of this deal,  but curious to get your perspective.