DTI is calculated by comparing what you currently earn to what your monthly recurring expenses are, plus your future expected housing payment.

Within the last month, we closed on a traditional 30 year fixed mortgage based on W2 income on a property in TX (we actually lived in a different state).

I can’t imagine a traditional lender allowing you to change the holder from you to an LLC.

No special assessments or indications of anything  significant upcoming.Purchased in 2011 for $46k (foreclosure)Current value: $200k + (comparable units, in great condition - mine is NOT in great condition)Current mortgage: $27.5k @ $75/monthHOA: $323/monthInsurance: $34/monthProperty Taxes: $163/monthTotal Monthly expense: $595/month Rent: $900/monthTotal income: $305/monthI own two units in the complex, and plan to hold one of them long term for both the rental income and, potentially, a place for my son to live a few years from now (If you are familiar with the real estate market in the Seattle area, you know how hard it is for young people to find a reasonably priced place to live.

In our initial underwriting process we always call around to the various comps to compare vacancies and rental prices on the various unit sizes. 

Many threads comparing options exist on BP.

Which I would run the MIRR on that decision to compare it apples to apples.Question is… am I thinking about the use of this $50,000 correctly?

When doing market comps all amenities are used to compare with the units.

Once you pull MLS data you will see that as well. 5th ward -- is a step forward where you can still buy raw land  and build and sell with early adopters who wants to be close to downtown ( a bit higher price compare to acre homes and without govt assistance) .

A portfolio lender with their own money can do whatever they want but you'll pay more for it. 7% is high, but if you hold that long enough you could then rate and term with more traditional financing later.