Personal Financial Statement Borrower’s Schedule of Real Estate – or- Resume illustrating experience2-3yrs Personal & Property Tax Returns – All schedulesPrevious Year and YTD Property Profit & Loss statement w/ detailed expensesRent Roll w/ detailed lease informationCopies of all Leases3mo.

Note that the diagram doesn't consider tax implications—that's another important factor you'll need to include in your decision.

@Felicia NituIn addition if you actually want to realize that value, you need to count another 5% for selling costs, and the taxes from the sale.Assuming a 20% capital gains tax, your total ROI on the above scenario would be about 12%, even with the numbers you were using. 

I promise you will have options once you finish renovating.If you purchased correctly (location & purchase price), you will have enough equity so that you can either sell it for tax free capital gains, cash out refinance (if mortgage rates are lower), or pull a HELOC to acquire your next property!

Out of the 5 deals I am LP in, Rod's are giving me the top 2 returns (primarily due to fixed debt) while others, not so much but their returns do get accrued

The other factor that's relevant for me is that my husband is a high end W-2 wage earner and we could greatly benefit from the potential tax benefits of actively managing the property. 

If you live there 2 years or more before selling you will be exempt from tax on the 1st $250k in profit which is a nice bonus. 

You will need 6 months worth of the payment (including taxes, insurance, HOA) in liquid assets to show an underwriter.Now with doing a rental agreement, do I need to have tenants living in the home first or new prospects lined up before the underwriting? 

No personal income or tax returns are required.

Look for areas with stronger rental demand, lower property taxes, and minimal HOA fees to keep expenses down.