I think it’s called form 1000https://guide.freddiemac.com/c...For example, if I’m purchasing a property where monthly PITI is $1,000 and monthly rental income is projected to be $1,100 does my “income” part of DTI go up by $100 and effective improve my DTI to qualify for the loan? 

Even the decrease in 10% rent can have adverse effect on cashflow.I am also open to do a cosmetic repair where I can improve some of the stuff to compete with newer homes in the area (say granite countertops and stainless steel newer appliances).

Thanks @Scott Mac it definitely improves curb appeal 

Capital Improvements - I've spent a lot this year improving units during vacancy turnovers.

That being said, consider putting 25% down instead of 20% down as it should drop your interest rate by about 0.5% and make the property cash flow much better.  40% is overkill IMO, the improvement to your interest rate is negligible at best. 

Through my research I’ve found traditional bank financing may be the route to take as they have better structure for exits(less yield maintenance concerns) and loans include funds for improvement.

When my home goes up 30% in value in 4 years, not because of population growth, its because you need 30% more u.s. dollars to buy my house, not because it's actually grown in value or was improved or made nicer.

If you do that, your cash on cash return would be dramatically improved leaving you more funds / opportunity for your next deal.

@Lyle Cooper, Much depends on your adjusted cost basis in the property (your original cost plus capitalized improvements minus depreciation). 

I can just provide the list of all the inventory and improvements that I made for the property and depreciate everything in lump sum.