I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.

Average unit size is 330 sq feet.  

Also, it’s a business expense and can be used as a write off.

Option 1 is more expensive Than option 2 not sure why since the percentage was lower 

My parents own about .8 acre on Main Street in our town expensive/expanding town.

I know the struggles all to well with those expensive markets.

The average monthly rent for a 3 bedroom 2 bath will be about $2,500. 

I run my entire "empire" using Excel/Sheets for tracking expenses, Apartments.com for online payments, MysmartMove for credit/background checks, DocuSign for electronic signing, and Zillow & turbotenant for posting up listings.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Unfortunately, reimbursement for expenses (e.g., work related supplies, travel, meals and entertainment) are not considered wages as they are provided for offsetting a specific expense incurred while performing a service for the employer.