This is to ensure that the borrower does not default in case of non-occupancy of rental units.In case of point 1 to prove experience, the owner has to prove one of below:1.

Depreciation is a non-cash expense so it will allow you to cash-flow but show little to no income on your tax return.

Probably the biggest thing was that I partnered with a contractor who had a different vision for the property than I did.It was an old duplex that he envisioned as being sold only to an investor and he wanted to finish it with low-mid grade finishes (formica, wall-wall carpet, clean up the old gas stoves, etc). 

The first refi will clean up my credit report and raise my fico score enough qualify for the best rates on a rate and term after.

I’ve gone both the turnkey route and non turnkey route, both out of state.

Plus you'd have to live in it for a while as primary before converting it to non owner occupied. 

Before the home was sold the new owners had it inspected and they wanted the boiler services and cleaned.

@Stephen KunenProviding substantial services to your hosts provide suggestions that you should report it as schedule C as opposed to schedule E.Substantial services include but not limited toConcierge, meals, housekeeping, cleaning, entertainment etc.A pro of reporting it on schedule C is that losses are deductible and not subject to passive activity rulesA con is that income will also be subject to self-employment taxes in addition to income taxes.

The above will get you within a few bucks a month.PMI, which comes with conventional non-FHA mortgages, can vary by lender. 

I would suggest looking at East LA (zip code 90063), its in a non-incorporated area of LA, meaning no rent control, and its a bit easier to find housing.