The lender will not give you credit for your rental amounts since you have never been a landlord before (need 2 years history on schedule E), but since you qualify for the payments with your own money, it shouldn't be an issue.

If you do not have any landlording history, most big banks require that you qualify on the DTI without using the projected rental income.

If you pick quality, stable tenants (normal life/move history, steady long term employment), the chance of them breaking a year lease is slim.  

There is no rental history so I estimated a monthly rent of 1400 total, 5%vacancy, 5%repairs and 10% capex.

Looking at history it is hard to find low end rents ($1200 or below) where you might expect a 40-50% decline in rents.  

Student housing TrampolineAny wood burning stoves in home or garage unless professionally installed, meeting underwriting criteria of insurance coverage No exotic animals Unacceptable Dogs:oPit Bulls oAmerican Staffordshire TerrieroAkitaoChowoDoberman PinscheroPresa CanariooRottweileroAny Wolf HybridoAny Mix of Above BreedsoAny Dog with a Bite History

One local company you could try are Eastern Savings Bank.

I explain that I will be able to see their history of debt and whether or not they are responsible in paying it back.2.

The push to start renting it out is so I can start building a rental income history so I can buy another property sooner than later.

Their income met our criteria at the time but they didn't have long enough employment history.