It its positive, it helps your DTI by adding to the denominator:DTI = (total debt payments except rentals) / (W2 income + net rental income)If net rental income is negative it hurts and adds to the numerator:DTI = (total debt payments except rentals - net rental income) / (W2 income)Because the net rental income is negative, subtracting it increases the numerator.Now, if you have a history of being a landlord and want to buy a new income property, lenders will use a rule of thumb to estimate the net rental income from the new property.

In some Provinces services may be provided or {partially} funded by government, making the direct cost to you little or nothing.There are also companies out there claiming to be able to "fix" your credit history/score.

This is the only other information I was given besides a property description and history about the borrower.

What is your history in tax.

Approve with additional security deposit to make up for the lack of rental history and new jobs.

I can get 15% NNN retail strip centers and have no employees or headaches to deal with. 35% is worth my time for a business but 15% is not.I generally like existing building for businesses versus new because you have a history of sales and what the area thinks about the concept.

You obviously started with way too big of a project. 5000 sq. ft is for those that have plenty of experience and will be working with contractors that have a history of good performance and doing projects within budgets and within schedules on their personal projects and they know them well. 

But his credit history is messy (8 collections and 1 eviction).

Do you routinely request criminal histories Roy?

And they may find that even if they are the best landlord in the history of California (but not the best buyer/investor), they are barely cashflowing.