I just filled out a pre-qualification application and i answered all their questions.

It was necessary to go to the bank the check was written on to ensure that the funds were available for a transaction I was working on.In the past I was able to talk to a personal banker and make these things work, but B of A was going through a change and changed there qualifications for a personal banker.

Very nice post @Curtis Rouse - I agree with all of the above, but would add that, assuming you don't have unlimited financing, single family residences (SFR)s will count as a liability for future mortgage qualification purposes because you can't live there yourself while still claiming it as income producing (should you rent out some of the rooms for example).

The income from daughter alone does not meet the income qualification.

The qualifications seemquite vague to me.ThanksNina

You can also hire your kids.If you have a lot of rental losses: another reason might be to make it clear in your (or your wife) qualification as a real estate professional - although not dependent on a LLC as that is mostly a minimum 750 hours annually spent on real estate matters, if no other job - in which case you can deduct more then 25K in rental losses.So, it all depends on your and your wife situation - if you have a job or not, with or without retirement plans and medical insurance, etc. - and what is more important to you.There is another aspect to consider to set up as a different property management entity (LLC) from the holding entity - asset protection - you separate  public facing affairs and all the interactions with tenants, contractors, etc. through this operations LLC and act as property manager, not owner.

Mistakes to some degree are inherent in the process because in order to set parameters on the loan such as product type and rate, only a verbal interview is conducted and used as general qualification of the borrower.

In reality, you'll find that as your loan count goes up the qualifications will get tighter and LTVs will go down.

Nowhere in ERISA regs is there a qualification for only holding assets that are securitized or offered through prospectus, PPM (Regulation D) etc, or any other determining factor.

If he is a good tenant and cares for the property to your liking, I think it would be a reasonably safe move, the rent is already being paid on his income and somewhat taking her financial qualifications out of the picture.