DTI would include the Income from all your rentals.

My parents guarantee the loan so it goes on their debt to income ratio and their very high income and over 800 credit score qualify the loan for better terms.

If you factor in 8% PM, 10% vacancy including economic vacancy and capex/opex of 10% (5% each), your costs (still not including T&I) would come up an additional $2016, for a total of $8895 at 1.25M and $6969 at 900K 

FHA loan with monthly payment including taxes about 7800. the other side would get up to 3200.

Also, are you charging one flat rate to include utilities or charging rent plus splitting up utilities?

Thank you for your contribution, greatly appreciated.In the 100% scenario, the seller would be 1st position lien holder - in the 20% carry they would be 2nd position subordinate to the bank debt, which is a major difference.

Also include pictures of the land.Is the land buildable / usable?

With 5% down that’s about $35K not including closing costs and fees.

I’m budgeting about $1,500 per room, so $8,000-$8,500 to include the LR, DR, kitchen, and outdoor space.

This includes non-profits.