This is taken directly from their guidelines: "Method for Calculating the IncomeThe method for calculating rental income (or loss) for qualifying purposes is dependent upon the documentation that is being used.Federal Income Tax Returns, Schedule E.

No need to create a business entity, for those who are truly small (just be sure to beef up your insurance, if you don't have at least a properly run LLC, which will cost you a few hundred a year - the insurance is cheaper for those with one or two places and who own a house, cars, boats or have liquid assets other than IRA/401K -- which are somewhat protected).

Have 18k liquid and 45k in stocks, plus receiving another 18k in stock from my job next week.If this is not typical should I just call lenders in my area and ask them what their loan terms are for the two different types of properties?

Up until now, we have not used an LLC to purchase or protect any of the properties mainly to limit down payments to 15% instead of 25% as liquid cash has always been the hardest to come by.

But it happens in the bond market too, and bonds are more similar to homes than stocks, they trade in large blocks, some aren’t super liquid, but still, bonds don’t have leaky roofs and you can buy and sell them way faster than you can buy and sell a home.

Meaning they have good cash reserves / liquidation?

Smart locks are good for this, until they aren't : ) But if the tenant has wifi you can do smartlocks and give codes to contractors that are good for X hours then expire.  

I have like ZERO bad debt, no car loans, no personal loans, like 3k in credit cards which I can pay off at any second, im insanely underleveraged on my investment real estate, have 820k in cash liquid, among other liquid assets like silver bullion, crypto, ect.

It then shows up on my Schedule E as a management fee. 

It's one tool for asset protection, but not nearly as good as structuring your LLC, and then even putting THAT within an LLC.Dave E., thanks for that info re commercial lenders not touching a SFH.