If debt concerns you, look at DSCR loans, which qualify based on rental income instead of personal finances.

Increase earnings, reduce expenses, save up, and invest.

•Beyond that, flood insurance adds to a buyer’s monthly expenses, which can affect their debt-to-income (DTI) ratio and reduce their overall purchasing power.

If not, the income won't be considered. 1.

I have a great credit score, good stated income, and about 50k worth of personal credit to my name already, so it was relatively easy to get approved.

So I  have a income of around 15k from the business.

You need a designer who understands maximizing income on properties, or you need to understand it and be able to sketch it out. 

For instance, knowing the income limits, family size requirements, and the types of properties that qualify can help you make more strategic decisions.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details:After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Higher property taxes in Worcester, coupled with a lower average household income, make profitability more difficult to maintain.