Based on Micro and Macro local market and economics the ARV can be subject to many changes come time to get the appraisal for exit and many investors slip when it comes to margin to make the refi make sense.

I think you can't go wrong with a long term rental, but don't count yourself out of STRs because of your location.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.

His question was, if you have a long-term residential lease signed 1+ years and the property is rented out, does the mortgage still count against your DTI?

Some lenders will base off the "mix" of commercial vs residential by sqft and some will base off of rent, and some will base off of the unit counts, so you'd want to take advantage of the lender/broker that can fit your scenario in the most favorable way possible.Is the property fully occupied?

Thanks for sharing your knowledge For a rough calculation you could take the annualized P&I payments / the purchase price. 1256*12= 15,072 / 75000= 20% annualized returnI use a simple xls spreadsheet with Present Value (PV) macros to calculate my offers based on P&I payment and remaining term.  

I would most likely use MLS to find a property but for Padsplit I would want to add bedrooms and possibly bathrooms to maximize bedroom count. 

If you're in a very precarious spot I'd be 100% fixed income and then depending on risk appetite & unit count down to 30% fixed income.

An escrow holdback does not count towards your 3% max.Depending how far into the process you are, you could consider raising the purchase price and do an escrow holdback if the sellers are willing so that it's net the same to them and you come with very little additional money. 

I ask this because Buildium, also a RealPage company, can actually be more affordable depending on the door count and whether you manage on behalf of others.Buildium, like Appfolio, has different tiers of membership.