However, when I add back the principal and the tax benefit my net return is around 8.5%-10.6% per year. 

First deal to get my feet wet in REI but have quick question.In contract with a property that I expect will cash flow $70-150/month (10% vacancy, 10% PM, $100/mo comb. capex/RM); cash return of 7-13%, excluding what I'd pay myself to self-manage.2/1, rentable condition, listed at 52, offered 32, in contract at 41.5. 

How do lenders calculate debt to income ratio using the schedule e on tax returns?

However, when I add back the principal and the tax benefit my net return is around 8.5%-10.6% per year.

[Just try to ensure that the returns still work in your favor, even at 100% leverage!]

Less hassle when it comes to returning money.

Typically I would request tax returns for T3 as well as T12 seller certified financials once I'm under contract.

I was trying with one lender who said they can do the cash out at the beginning, but then after reviewing my 2016 tax return, which claim a loss on a K-1, they said they can not due to the debt to income ratio would not qualify (comes to negative..).

In return, he reviews all my deals, answers a ton of questions, and has referred me to great attorneys, CPAs, and real estate brokers.

I'm willing to help out in return.