I am planning on counting the loan as a loan not secured by my home per IRS publication 936. 

It is not illegal to count the income but the bank won't count it for the purpose of financing. 

But you factored for all of the customary variables in your analysis so I would count your #s as fairly accurate.

Same bed/bath/sq footage count.

I've done a few of these, and while worth it in the end, believe me when I tell you that the page count on these things often goes into the low thousands.Success with these things always involves having a good lender relationship, a good economy, and vetted principals (that is, no one questions your or the management team's abilities), in addition to a solid property and business plan for the property.You will not have any luck with this sort of thing if you're new to commercial real estate, and/or the property is small or not cash-flowing.

The answer is yes to that question however the partner that I was counting on provide a good portion of the financing used the money on another project since we were under the impression that we lost the auction.

Yesterday I was signing my closing papers for a refi on my primary and my mortgage broker mentioned that Fannie Mae has just changed their rules about 2 years minimum to count rental income.  

We ended up keeping the home and currently rent it out for about $2,050 month (using a PM we net about $650-700/mth on average...not counting HELOC payment).    

At least Downtown LA has more space to spread out; whereas downtown NYC has only the tiny narrow island of Manhattan (New York County) unless we count downtown Brooklyn etc as part of downtown NYC.I'll never forget the walk from work downtown Manhattan to Forest Hills, Queens back in 9/2001 when everything was shut down.

The first restriction placed on us was a max of 4 properties per relationship with that bank, even if we used different LLC's, it would still be counted as one relationship.