I have a prospective tenant that filled out an application.However I need some advice on qualifying this individual.The current rent is 3600The applicant is a family The Spouse doesnt work The main applicant gross W2 income is around $10000 monthThe monthly net income is $5700No car loan's No credit cards balancesThey pay $800 month on a personal loan.Since a rent check is written after net income is received.

I assume its to make higher income ?   

Here are some things to consider when deciding whether to lower the rent: Evaluate Market Demand,Assess Feedback, Be Flexible, Remember, finding the right balance between maximizing rental income and minimizing vacancy is key to successful property management.

I'm assuming that this leaves the door open to negotiating a new rental rate and annual escalation?

I don't see any line items for landscaping items: grass cutting, annual mulching, cleanup, and snow removal (if you are in an area with snow).  

For the purposes of calculating the limited interest deduction, the total mortgage debt owed would include both the individual mortgage on Unit A and the owner's share of the underlying mortgage.So, the total mortgage debt owed would be $800,000 (individual mortgage) + $200,000 (owner's share of underlying mortgage) = $1,000,000.Therefore, the owner would be limited to deducting mortgage interest based on this total mortgage debt of $1,000,000, not just the individual mortgage.Thus, the deduction for mortgage interest would be calculated as:($750,000 / $1,000,000) * $40,000 = $30,000Therefore, in this scenario, the owner would be able to deduct $30,000 of mortgage interest for federal income tax purposes.

In 2023, I started a part-time remodeling service business to supplement the income in my consulting practice.

Evaluate your savings, income, and outgoings; moreover, educate yourself about mortgage alternatives and programs that help with a down payment.

If you're not careful, you can have your entire gain converted into non-exchangeable ordinary income. 

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.