I suppose my debt to income ratio will have to be good enough for both the rental and the house being built (even though I'd be renting it out as soon as my construction loan went to permanent)?

He has a drug possession charge from 6 years ago and a DUI from 7 years ago.

The major concern I have seen is Loan to value and debt to income.

My titles were always clean but they won't pay those debts off which can be 20 or 30 thousand dollars!

However - be sure your prior deals close before this new one so the bank doesn't accidentally discover that you've created new debt - that could impact you negatively. 

After 2-3 years of sitting mostly empty (I racked up a lot of debt during this time), I found a found a renter.

FMV - Debt = EquitySimple, but it should work or at least get in you in the ballpark.Jeff

You need to speak with a lender, give them your income, debts, etc. and they will tell you Exactly how much you qualify for.  

As long as they are properly filled out, make the proper claims and are signed and notarized they are no different than having the original note.In this case, the LNA is more of an instrument of ownership than the governance of the debt.  

Along with another big point is PM the lower value asset class's are High touch and PM is critical and as most PM companies grow they soon learn that these types of properties are not profitable for them to manage because of the extra work involved so I see the better PM's moving up in asset class's and leaving these types of homes behind...Its not that you can't get lucky and I am sure locals in Memphis think this is nuts but they also source there deals so what they get for 50k may not be what someone from CA can get the same home for in the same condition.My real experience came when I learned  as a lender in possession of a multitude of Memphis properties ...