Perhaps they are suggesting that deferred maintenance is not always factored in, or something else.  

@Sean GrapevineAm I understanding your post correctly when you say that the borrower can use the Fannie Mae 1025 form to factor in potential rental income when calculating the borrower's DTI when applying for a mortgage?

, but i ran the numbers and after that it didn't look so appealing, and if you were to factor in capital gains and other fun government taxes, well, i don't think it's a good option, and there are for sure better ways to exit.The numbers play out like this (not considering taxes, capital gains, and other factors, i was just trying to play around with the idea and keep it simple for the start):Your NOI: ($119,160 + $30,000)  - $70,000 = $79,160 or $2638.67 per year for 30 years and $219.89 per month for 30 years when you factor in the 30% down into it ($137 per month for 30 years)Cap Rate: 2633/70,000 = 3.76% per year for 30 yearsCash flow: $331 per month for 30 years but only $137 of that would be profitROI: 2.33% without the 30% down factored into it (3.76% with the 30% down factored into the calculation)Total ROI = $79,000/$70,000 = 112.86% over the course of 30 yearsConclusion:Well, from what i see here, the problem is the interest rate used.

Your income will be a factor too.

Skylar:I'm not in a position to help you, but did find and error in your math and your thinking.First, if the monthly rent is $6,900 and the vacancy rate is 8%, then the monthly vacancy cost is $552, not $75.Second, you need to factor in a fee for a property manager - even if you are managing the property yourself.  

The pivotal factor for our team is rehab costs.

My numbers did factor in 10% property mgt. 

In buying any property, you cost basis is the main factor and the lower your financing cost the lower the overall price of the project.  

If you are in a buyer's market, you might have to suck it up for an otherwise good tenant; if you are in a seller's market, you might consider raising his rent to help with the aggravation factor.

Would you happen to be familiar with the exact calculation that lenders use for the DTI calculation when factoring in other properties?