It's scenario dependent.For a rental property that you have owned for one full tax year, your Schedule E is nothing more than a profit and loss statement, and is taken as such, with a few modifications where we have better information than what's on the P&L:Note that we do not even look at the bottom line number, lines 21 and 22 are not directly used in any calculation. 

Keep your debt low and DON'T GET A BRAND NEW TRUCK JUST BECAUSE THE SALESMAN SAID YOU CAN QUALIFY FOR IT

Property is being sold as "STR Business" (website, branding etc) at about 3x what local comps for same size and bedroom count residential homes are going for.  

Why would a partner come partner with you, a brand new investor, on a gut reno that is on the market? 

Check your O&E report or online assessor records to make sure they match up.Some descriptions are the metes and bounds type, which it sounds like is a particular requirement for the county that Chris was looking into.

This is taken directly from their guidelines: "Method for Calculating the IncomeThe method for calculating rental income (or loss) for qualifying purposes is dependent upon the documentation that is being used.Federal Income Tax Returns, Schedule E.

Any other advice is welcome - I'm brand new to all things adult. 🤪 Just recently opened my Roth IRA and now looking to purchase my first home and then hopefully a rental.

In the past, we have filed individual taxes with schedule E but with the portfolio growing to be something more serious business rather than hobby house fixing, we are looking into Accountants/Tax Prep.

That being said, this is what the underwriter looks at.For schedule E income (real estate etc),In most cases, They will take the total income after expenses (line 26), then add back Depreciation and Interest expense (lines 23c & 23d) to come up with a total number.They will do that for two most recent years (at least) and then take the average of those.Then of course add any other income that is usable, example would be your K1 income or any W2 etc.Then that is the total annual income number that is used to come up with the monthly number.As I stated before, I am not the underwriter and I am sure there is a lot more involved that just that, but that is a good estimate on what they do to come up with your monthly income we can use to qualify for a loan."

It then shows up on my Schedule E as a management fee.