If your licensed as a realor doesn't all the income you make have to be reported as earned income rather than passive? 

Also, what is the monthly gross rental income that this property achieves? 

How certain are you about your rental income estimate?

The extra five months of rent income would have covered 50% of the renovation and saved me a lot of time and struggle.

Quite literally, if the rental income is equal to or greater than the PITI, it'll qualify (with some exceptions of course). 75% LTV is typical, but I have worked with lenders willing to do 80%.

Section 8 people are no different than anyone else aside from income levels.

@James Robert if you are flipping, even if you hold the property for 1yr, the profit is still taxed as ordinary income. 

Have your income statement both actual and projected, real estate owned, your detailed plan for going forward, have your FICO score, tax returns. 

Your resident state CA will tax all of your income, including out-of-state gain.

Hi @Michael Behr,In my opinion, the rental income is way too low for this to make sense.