A lender might be able to use the rental income to improve your DTI and get you approved for a higher amount, though it may only be a portion of the rental income since its been less than 2 years.

has your credit rating improved?

Value-add - first 2 months improving the paint/decking/driveway/gutters/drainage/etc.

I mentioned this to my friend that owns the company and he suggested that maybe my new tenant would be able to make improvements as he previously did construction.

A local realtor estimated that, after a few more cosmetic improvements, 2 weeks of ads, and 2 consecutive openhose weekends, we would likely gross $336,000 to $355,000.

A local realtor estimated that, after a few more cosmetic improvements, 2 weeks of ads, and 2 consecutive open house weekends, we would likely gross $336,000 to $355,000.

In my market, I would be able to put down 20% total on the PP and the budget needed for improvements.

My understanding is that I can fill out an improvement acknowledgement form and get the finished basement permitted within a year. 

Value in the land and now has some improvements like driveway and basement foundation footer.

Improvements made to the property after the last tax filing, in most cases can be depreciated up front as well.