Accepting a reduced rent in lieu of making monthly payments to the water company would be one way as that would reduce my net rental income.

Prior to about 15 years ago the PM used to call with a rundown of the applicant’s credit, income and any relevant facts and I would approve or deny.

No income verification.

With housing prices skyrocketing, the increasing cost of raw components and lumber, and labor shortages, the idea of owning a piece of income property is just not in the cards anymore for many individuals.

In case helpful, more info on DSCR loans:DSCR loans won't use your income to underwrite the loan.

No matter what you do I think you really want to consider renting it out for at least a year to convert the ($130k minus $13k in closing costs, minus $80 cost basis = ) $37k in profit from regular income down to long term capital gains.

The current loan would have to evaluate your debt to income with the additional debt etc.

It's challenging to find reliable starting points online without falling prey to scams.

The investor seems genuine and I could not find any major red flags about him online.

So all of my income goes toward paying down the principle.