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. 

Anytime I hear a banker tell me that sweat equity does not count as skin in the game I want to slap them.

But don't count on working out a sub2, as the bank may not reinstate the loan with just the back payments and fees, they may require a full pay off.

Lenders will count 75% of rents making qualifying very easy.

What lurking beneath, in the walls, and up in the roof can eat your returns up for a decade.You are counting section 8 above market rents.

The great part is that we can do anything on the inside and that is where it counts.