Do I have to claim the down payment as income since it was used to pay back a loan?

From most of the deals I have seen, a lot of people in Oregon are BRRRRing and can buy deals undervalued and rent them out with solid rental income. 

I have a prospective tenant that filled out an application.However I need some advice on qualifying this individual.The current rent is 3600The applicant is a family The Spouse doesnt work The main applicant gross W2 income is around $10000 monthThe monthly net income is $5700No car loan's No credit cards balancesThey pay $800 month on a personal loan.Since a rent check is written after net income is received.

What’s the typical income in the area?

The other considerations noted by other posters are valid, but when you weigh them against the high risk of extended vacancy, ending at the beginning of winter is to be avoided at all costs.  2 months of added vacancy is a 16.6% loss to annual income. 

Let's chat about what is your net income?

This can be appealing to investors seeking passive income without the responsibilities of active property management.2.

I assume its to make higher income ?   

Here are some things to consider when deciding whether to lower the rent: Evaluate Market Demand,Assess Feedback, Be Flexible, Remember, finding the right balance between maximizing rental income and minimizing vacancy is key to successful property management.

Evaluate your savings, income, and outgoings; moreover, educate yourself about mortgage alternatives and programs that help with a down payment.