Based on your numbers, and assuming you have a credit score high enough and have never filed for BK, you shouldn't have an issue getting approved for an HML to buy/rehab the property that I would estimate at about $370k-$375k (which includes 100% of the rehab costs).

@Stuart Udis I understand the importance of having the funds for repairs, vecancy and any issue that may happen.

Then interview them.Now, let's look at your issues:1) How did replacing a toilet result in a burst pipe and flood?

I want to ensure that the structure of these investments I am working on correctly address key issues for investors. 

That means there is not really an effect on the debt to income ratio neither positive (income) or negative (loss) but rather simply making that payment  non issue. 

Is it a common issue for beginners to get a PM on board with only 1 property to manage to start?

I have struggled with the tenancy laws in Ontario (apart from cash flow issues) and hoping to diversify into a market where the laws are more balanced. 

This issue also naturally drives up deductibles.  

No issues with MTRs in duplexes, triplexes, and quads.

You ask about a skip tracing issue because you are not having success with it.