As pointed out above, I don't thing that you are including all of the expenses.

The loan program qualifies the property by using Rental Income to cover the Total Mortgage Payment which includes Taxes, Insurance, and HOA.Regards,Michael Taylor

However, if the $500/mo does not include maintenance, vacancy, capex, and property management, then it probably actually makes your cash flow negative.

I've seen conflicting information on when/whether these costs are deductible — most, including Pub. 536, seem to apply to the *purchase* of a rental property, and resources that deal with sales have focused heavily on either straight-up sales with capital gains taxes or on 1031 exchanges with deferred gains.

This framework should be comprehensive, covering all key areas of property management including financial management, tenant relations, routine and emergency maintenance, legal compliance, and property marketing.Identify the critical traits, skills, experiences, and credentials that distinguish a high-quality property management company.

Some people are really comfortable with holding properties that break even for a time. 

Will be breaking ground on a few projects in LA and Joshua Tree area soon.

hmm...well, as someone who has 20+ million in warehouse lines of credit I do know that it would still be fraud not to include those loans on the application/quarterly financial statements that are required for business credit. 

Do you just include all utilities in monthly rent since it’s coming from one breaker and water account?

Assuming that is done, the 2/1 temporary interest rate buydowns are guaranteed to break-even.