I know I could try to low ball the offers but it seems pretty consistent in many areas.

As Hadar mentioned the smell could get pretty nasty. 

Fannie/Freddie loans just carry better rates and terms (in general) so we try to go for those first.Here's some bullet points on how income is calculated with Fannie/Freddie and S-Corps:W2 income – that’s easy, you probably understood that your W2 income can be added TO incomeK-1 income (box 1 & 2) – also pretty self-explanatory, but just in case, it’s added alsoAmortization/Casualty Loss – Added BACKDepreciation 1120s (line 14 & 15) – Added BackHowever….Mortgage Notes, bonds payable in less than 1 year (Schedule L, line 17)- this is SUBTRACTED from your incomeMeals & Entertainment (Schedule M1, Line 3b) – SUBTRACTED from your incomeNon re-occurring Other Income (1120s line 5) – SUBTRACTED from your incomeAnd then they would average 2 years of these data points to come up with your "qualifying" income. 

Plus with looking to make the move into multifamily with a purchase next summer, I see this as pretty low risk.

I am pretty new to investing with 2 rentals.  

If you are willing to speak to a smaller commercial/portfolio lender you might have the opportunity to do so, but it is still pretty rare.I am assuming you are looking to scale quickly or have a deal that you don't have funds for that is a good buy? 

Your calculations look pretty good, if you are comfortable with the return you should be alright

It hit my area pretty hard last year and most attorneys and title companies have taken measures to prevent it.

That mortgage has to be pretty low right now. 

Hey Brett,My first was pretty easy...