Unfortunately although I am cash flowing 1800 a month on my rental they say they can only use a portion of it as my income plus since the other two properties I purchase last year didn't have an income they couldn't use them as part of my income Nevertheless.

Only expect a small portion to be truly motivated e.g. 2 or 3 out of 100Step 5.

Hello everyone,When you apply for a 203k loan, do you have to take a portion and allocate it to rehab costs?

That should weed out about 75%If they want to lock up the property then require a Nonrefundable deposit. 2-5K works but you can always percent out a portion of your assignment. 

I can probably do the job myself, but I want to start slowly phasing out of the DIY portion of my REI journey since I'm on property #2.  

On the lease I have a section explaining the security deposit and I specifically mention that it is reserved for it's intended purpose and is NOT allowed to be used to pay any portion of rent.

Being 20yrs away from taking mandatory draws and given the amount is small enough that it wont affect my tax bracket this year; I think the best choice is to invest the cash portion into a Solo 401K Roth sub-account and have it grow tax-free.As Brian mentioned: The issue is being able to separately track and manage the two sets of funds with different tax treatment.  

However, I am worried that the banks would not see it that way and would instead focus on the fact that a large portion of my income would go to debt payments each month.

As I am not licensed to practice in your state, I would do you the service of not explaining in great detail, after my reading of the Ohio Constitution, of why I think this violates the Ohio Constitution.I would say that I do believe it violates central precepts of Federal Law, namely the Commerce cause and/or its negative implications, and through the incorporation of the fourteenth amendment, the violation of what I would consider to be a fundamental right (although not entirely elucidated in case law yet), namely that of the ability for people to freely contract for the carrying out of what I would consider basic and fundamental conveyances of property.We could debate at length about this portion of the situation, but as you said, you are not here to do that.

I am curious, will I generally need to get closer to 60%-65% LTV for the construction portion of the project?