They take into account the tenant's income, other housing costs like utility bills and market rent for the area. 

A lot of sellers are burned-out landlords who like the idea of "passive income"/mailbox money after years of chasing late rent payments, dealing with tenant BS and maintaining the property (I use quotes for "passive income" b/c no income is truly passive IMO, a wise seller will still pay attention to what's happening with the property in case they need to take it back, but collecting payments like a bank is generally easier than collecting them like a landlord, you can set up ACH with the buyer's bank or hire a loan processing company to handle it). 

She also told me that the owner is from Mexico, he does not report everything and is earning more income than reported.  

if your a young realtor like I was  started at 18  and got my brokers at 20. how are we going to qualify we dont have income yet..

One month or one decade selling a flip is an active business like selling hamburgers, and pays regular income taxes not capital gains.

But even if there is, then I have to learn to plow through that fear and keep investing in good income producing diversified assets.

The tricky one is the rent to income ratio and how it is related to the median family income.I did note that at lease one other poster was advised to always use the low barrier screening criteria to avoid potential lawsuits. 

The reason is since I am the owner of the LLC, it's income is reported in my personal taxes. 

So if you think you can net say $45k/yr in profit it will take you 3 years to break even if you ignore income taxes.

Your 'Ability to buy' will change with your creativity, not only with your credit score or income.