For example: 975k for an old (100 years) place with 100k income and 27k property taxes and owner paying $8,200 in annual utilities plus insurance and maintenance costs. 

My question is can we use the rental income to qualify for a loan?

You would definitely need to also work on your income or get other people to co-sign on the loan to afford a $850k-$950k home. 

Would they just be passive losses that can offset passive income or can we treat them to offset capital gains from other investments ?

Regarding taxes, I believe LLCs are pass-through entities, and you will just claim the income on your personal tax returns.

If you sell within 3 years of moving out, you exclude your capital gains(up to $500,000) but you still include as income the amount of accumulated depreciation on the propertyif you sell after 3 years of moving out, you may capital gains and tax on depreciation recapture.best of luck.

One of the many advantages being classified as a “real estate professional “allows you to offset income with real estate “paper losses “ like depreciation and other expenses.

Hi, Applicant has good income and job, but ha filed a Bankruptcy in 2015.

I recently purchased a 7 unit with 20% NET income.

Apt 2 rented at 1300/mth (2 bd)I would call the rentals B-/C because they are in a giant metal shop and low grade materials.So gross income of 76K annually.Expenses:Insurance is currently $14652 annually but that seems way too low when SFH go for that muchTaxes are currently 2800/yr, but I expect those to nearly double if I pay his asking price (so let's say 5k/year.