if you buy a property at market price in a good neighborhood - you will break even or lose money.and in general, if you're serious about this, i'd recommend going to your chosen market in person, probably multiple times, to set up your team. 

Since the S&P 500 averages around 10% annually I personally don't see a point in investing in a rental that's not going to at least beat that.

Is this standard practice or is there any lenders out there that actually accept what the home is rented for?

A Self-Certified permit review would likely only take a few weeks; as compared to 4-6 Months for a project which is not "Self-Certified" and needs to go through the "Standard Plan Review" process.A Zoning analysis should be performed for your property ASAP using a Plat of Survey to ensure you would be allowed to build what you want to build, and check for any potential "Setback" concerns when it comes to adding Dormers...

Hey BP I have questions I'd like to consider myself a strict person when it comes to screening my tenants recently I have a few section 8 applicants.

The location defines all long-term income characteristics, including whether your rents keep pace with inflation, the total capital required to acquire sufficient properties to maintain your standard of living, and how long your income will last.There is a straightforward location selection process.

Check out the info at biggerpockets.com/conference but feel free to email me personally if you have more questions: [email protected] SEE YOU IN CANCUN! 

I am not a market-timer, and a time in market person so just for folks calling that out that is with this considered.

As for getting less then payment standard calculation, that stands true in theory.

Turned into a great rental, that down the road will make an excellent personal or retirement property.