I am in a similar situation in Philadelphia.Thanks!

You could partner with a more experienced real estate investor and see if they can come up with more unique ideas for your particular situation.

Do you have other applicants which you will approve, that's the best way to get out of this situation with this nasty applicant.

@Jason DiClemente thanks for that tip, I guess I didn't even think of that and would probably have just assumed a refi would be just as hard to come by because of the same reason lenders are balking a bit now but your saying the game changes a bit when you show 2+ years of income even if its a strange situation like this 2 homes on 1 deed deal?

Their expertise minimizes your risk of a bad situation, and your choice of project will be less of a shot in the dark. 

I imagine whoever wrote this either doesn't care to properly answer, or doesn't know they legally can.I see this as a "if mom says no ask dad" situation, however I want to make sure this is a question someone at the hospital can actually answer before I keep digging.

I would just add that on top of interest, depreciation and repairs/maintenance there are many other things you can deduct, depending on your situation - things like home office, car/transportation expenses, travel, meals, books/education and many more.

I know this probably has alarm bells ringing at this point, the new guy that thinks he can make it buying up cheap properties in Detroit, but as David Green says in his book, a good property manager can have success with this.

I clearly explained the situation and that we would not need an agent on the buy-side, but definitely the sell-side, and she was immediately responsive and helpful.

You should read about the 70% rule and see if it applies to your situation.