@Molly L., check into forming an S corp for property management.

@Harry Torrenegra generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names).

Any lender that says they can not count the rental income for any period of time, is not following Fannie Mae or Freddie Mac. guidelines.

In other words, Fannie Mae views the legitimacy of the LLC as a legal entity and I don't feel Fannie Mae would agree with this demand of the lender.

They are all originated and held privately, compared to the conventional loans you get at a bank, which are bought or backed by one of the Government Sponsored Entities (GSEs) such as Fannie Mae or Freddie Mac.Though some here feel strongly that a private loan is one made by your mom or dentist and a hard money loan is made by a licensed professional company, this is nonsense.

Fannie Mae website is great for guidelines on this one. 

Germain act of 1982 was set up to protect transfers to trusts from the due on sale clause that has been recently incorporated into Fannie Mae also.

(Not implying anything about you specifically, the following is directed at the lurkers) If your actual net monthly cashflow checks the 2.5x box but you lie to Uncle Sam when you do your taxes, Aunt Fannie Mae will cut you off. 

Yes, but only on an FHA203K or possibly a Fannie Mae Homestyle renovation.

In California the Fannie Mae contract is used for all loan types - VA, FHA, etc.