@Jason DiClemente thanks for that tip, I guess I didn't even think of that and would probably have just assumed a refi would be just as hard to come by because of the same reason lenders are balking a bit now but your saying the game changes a bit when you show 2+ years of income even if its a strange situation like this 2 homes on 1 deed deal?

Their expertise minimizes your risk of a bad situation, and your choice of project will be less of a shot in the dark. 

I imagine whoever wrote this either doesn't care to properly answer, or doesn't know they legally can.I see this as a "if mom says no ask dad" situation, however I want to make sure this is a question someone at the hospital can actually answer before I keep digging.

I would just add that on top of interest, depreciation and repairs/maintenance there are many other things you can deduct, depending on your situation - things like home office, car/transportation expenses, travel, meals, books/education and many more.

It's always nice to know there are alternatives to any given situation.

PS I can't stress the neighbors enough. 

I clearly explained the situation and that we would not need an agent on the buy-side, but definitely the sell-side, and she was immediately responsive and helpful.

You should read about the 70% rule and see if it applies to your situation. 

In my situation, am I gaining anything by renting it before refinancing?

I feel that he came from a landlord that had in house maintenance and he's use to things being handled immediately and there on the spot, but I have been nothing but transparent with him and I don't want any problems but it's becoming stressful.