In scenario 1 you may be double counting taxes and insurance. 

If you apply a filter and the record count goes really low or to zero, that filter is likely not available for you to use.

You typically need two years landlord experience before lenders will count the rental income. 

If the smaller 3-2 sold that fast, I suggest keeping the 4-3 count. 

I also sell & manage many more properties for members of bigger pockets.Take a look at my post count.

Some stuff, like interior floors and paint, don't counts towards the federal limits.Anyone else encounter this sort of situation?  

Should we just count on giving 35% of our calculated risk, hard-earned labor and challenges overcome to the gov't?  

If your stated appreciation rate is 7% for a reasonably long time and there is no expectation of that declining then you can count on $8,400 in appreciation whether you are a bad landlord or not!  

You'll need to prove a 2 year history and a three year projected continuance of any income to have it counted with a conventional lender.  

After the rehab my house looked new and was of comparable size and bedroom count as the new homes.