My question is in order to use my rental income to offset some of the monthly mortgage payment debt and improve my DTI, do I need to show 2 years of rental income and take no deductions on my tax returns, paying a fat tax payment.

From what I've seen, if the cash out refinance isn't use for capital improvements of the home, interest is non deductible. 

@Kat He, I need to improve on both rent and price comps, i’m trying to get more familiar with cap rates and interpreting data.

Hey Sannibel, in my opinion I don't see the Airbnb industry improving.

These refi loans are based on the improved value, so I avoid the costs of initial financing and waiting a seasoning period before refinancing.

You cannot exchange into  improvements on property you already own without some very risky manuevers.  2.

It is the selling price (less. closing costs and fees) minus your purchase price along with capital improvements you made (new roof, bathroom, etc).You cap gain/profit will be less than the $28k difference.

At the time, our high rent weeks were $4000/wk. since then the house has appreciated 50% (with some improvements worth about $150k) and rents this year will max out at $7500/wk for high rent weeks.

Landlord shall not be obligated to clean, decorate, alter, repair, or otherwise improve the rental, either before or after the execution of this lease, unless agreed to in writing as part of this Agreement.

Increased rents by small improvements to the property.