They are all on the same sports team and have no "proof of income."

Both meet the income requirement of 3x rent on their own and have excellent credit repayment histories.

Here is where the strategy comes in:When you move 401k stocks to a brokerage account via an NUA transaction, you pay income tax on the cost basis (And maybe a 10% penalty) but NOT on the gains until you sell. 

Then, weigh the options: sticking with the current rent ensures ongoing income but might risk tenant dissatisfaction, while offering a reduction can incentivize renewal and save on vacancy costs.

Best case scenario this year between the 2 of them I break even with rental income. 

First thing you need to do is identify if you are wanting an income play or appreciation play.

* I usually set #4,5 at 5% of gross income

@Christian Busch i’m a broker that specialize in income producing properties so I end up working with buyers sellers and tenants.

You are charging 10% interest, which gets taxed at ordinary income so you will pay 2-5% state tax on that money as well as your income tax level.

I want to use my business as the borrower to protect my debt to income ratio so DSCR seems to be the best route.