Additionally, my brother would responsible for claiming gift tax on the $350,000.My remaindership share is 35% and I will need to claim capital gains on the difference of carryover cost basis.  

Income was categorized in expenses and expenses in income.

Our processor must follow these guidelines to be compliant.I know this isn't great news, as it's not great for us either, but I hope I was able to provide some context on this.Let me know if you have any additional questions on this.Kindly,“Cozy Rep”

@Mikal MAxim   If your debt to income ratio including your rental income on the subject property is under 50% and you have good credit you would likely qualify for a conventional loan.

@Danielle Owens  In addition to the above, most importantly how is the PML going to be paid back? 

After a closer look into the disclosures, it turns out that the ADU (permitted, junior ADU) was being rented for supplemental income on Airbnb.

If you don't have other income and want to tap into your home's equity, you should use as little as possible.

Also, I think, the investment risk is more connected on the chosen project- property income, market value of the project.

What equivalent w2 income I need to make to keep $9000 after tax rental income?

I am a builder, we design and build homes and addition for our clients.