I agree though, Tenants should pay for there own power and water.

As a matter of fact, I wouldn't remodel then either....I used to do this as a GC in San Diego, and found that it rarely, if ever, pays for itself.

Verifying income is a method of determining whether they have the funds to pay rent.3.

I am wanting to do a cash-out/refi on a property CRA is auditing my 2022 taxes, bank won't initiate an application if taxes show owing. 

I would say Corby makes a really good point with regards to the MI that you pay with FHA. 1) I definitely would refinance into conventional (if that is an option). 

Paying a Contr to do everything sucks up a lot of $$...Personally I would buy the worst house in a run-down area of a nice city that is getting ready to gentrify.

-I gave them a 3yr option to buy at anytime-purchase price increases 1.5% every 6 months-They put $10k down (non-refundable) that will go towards their purchase-They pay $1850 in rent. 

Their current income is in Germany but they file taxes in the US and hold US citizenship.

Hi Christopher,These calculations are pretty standard on 1-4 Unit properties..Income/(Mortgage+Taxes+Insurance+HOA) = DSCR RatioHowever on commercial properties some lender may take into account vacancy, upkeep and other costs.

You definitely want to check with your CPA, but in my state, if you lived in the home as a primary residence for 2 out of the last 5 years, you will not have to pay capital gains tax and can roll that equity into your next property.