@Chris Adams   my bank allows me 12 specs at once and presells don't count. and If I buy one of their OREO lots it does not count.  

If the place is old enough to have knob and tube I'd count 10% for maintenance if not a little more.  

Your rental income will not count until you have 2 years of landlording experience shown on your tax records.

This also is based on the assumption that I am counting 12000 dollars of renovations for the property into the yearly accountings

Closing is set for July 20th.As long as I don't lose money I dont count it as an actual loss but when it's only $8k I take it as a personal loss because I know my tie and energy could have been used better to make maybe double that.

If you're not making at least 3x the rent in gross salary, there isn't going to be much of a cushion at all.On the other hand, if the issue is just that they simply don't have enough guaranteed income to meet that 3x times rule but more than likely are making more (i.e. due to the wife's substitute teaching income not counting), then thats another story.

Regardless of who is doing it, there is a cost, and any future buyer will certainly count it in.

If not, they added onto the property illegally and I would not count the additional sq/ft when making my offer.

Once you can show income from the existing rental property on two tax returns, a lender should be willing to count the rent from your new acquisition as income; that could help your DTI at that point.

My wife is from Brazil and we've been to Floripa so many times that I've lost count, we love it but it seems to always be a bit over-priced unless you look on the southern reaches of the island.