I've also had one potential tenant tell me that "an income requirement of 3x the monthly rent basically disqualifies single-income families".

If you want to use your income to underwrite the loan then you will have a longer seasoning / waiting period as those loans have different rules compared to loans underwritten by the rents / DSCR loans. 

Previously loan officers have not been very optimistic, probably due to her income. 

If not, factor minimum 15% for management.Also, consider that you will pay taxes on all the income (after expenses).As others mentioned, research the competition in your area to learn the demand/restrictions.Depending on these answers, you may be better off doing this closer to home. 

State income taxes are usually based on the gain or loss from each state, so you pay taxes on your gain in Illinois.

I live 100% from the income from our holdings. 

HELOCS do exist for rental properties but you are usually capped at 65-70ltv and these will most likely require a full underwrite that takes into consideration taxes, income, dti and all the normal quasi-associated red tape.

By renting out the additional units, investors can cover their mortgage and expenses while generating passive income.2.

Neither of these require income verification and much easier to navigate versus conventional. 

Ended up getting price reduces and seller credits in order to conduct some repairs.