I know that the equity is the most important factor, but if the ROI is great, and the purpose of the Sub 2 is a long term buy and hold strategy shouldn't that make the formula more flexible, since the equity would build faster with a higher ROI?  

I suspect I know the area, but I regardless having looked at a bunch of duplexes in Dallas, I cant imagine that you can cash flow with $4,100 in rents and a $659K purchase price, especially when you factor in property taxes, management, capex etc. the Dallas Property taxes are very high since there isn't any state income tax. 

I would increase that percentage with other factors, such as if the hourly painter came from a reliable referral source.In a nutshell, an hourly painter to me sounds inexperienced and better be waaaaay cheaper than everybody else.

The 25% exemption noted above is designed for relief from market appreciation not capital expenditures.

Once I hone in on some good market slices, I can then design a more targeted strategy. 

If you go modular you have to start modular with your design so find an Architect that has done it before.

Although a private letter ruling does not establish legal precedent for all investors, there are many advisors who believe two years is a conservative holding period, provided no other significant factors contradict the investment intent." 

There is more that U/W looks at than JUST solvency, though if you're properly collateralized and you have positive DCR then those are certainly the two biggest factors that will be considered.

The post itself though made me think what was already said about it being a tight deal.With the interest rate increase you’ll factor in and the closing costs it starts to look bleak.

@John King, I do have magnetic signs on my car and have had different designs for at least 6 or 7 years.