We were able to overcome it by providing proof that we paid, and were completely responsible for the loan and had recorded documentation to prove it (letter to lender attached below -  (side note this was for a VA loan so we used an agreement for sale in this case). 

Open to being corrected if I’m wrong, it happens.In that case, where tax code doesn’t specifically provide support for a scenario we need to rely on other secondary sources - hence the Pub reference.  

@Debbie Palmer you can rent out your property when you are traveling provided you comply with local regulations. 

You haven’t provided any financial information so there’s no way anyone can answer the question about how not to take a loss.  

Hi Arron, Fix and flip loans shouldn't take more than 21 days to close if you provided everything the lender asked for.

Capital Expenditures (10-15% of Income)Rule of Thumb: Reserve 10-15% of your income for capital expenditures (CapEx) like roof replacement, HVAC systems, or major renovations.Why: Regularly contributing to a CapEx fund ensures you have the cash on hand for significant improvements or replacements, preserving the value of your properties.5.

Didn't move any exterior walls and added more value through converting from a 2 bed/2 bath to a 3 bed/2 bath. 

Do a Google search for "Boommates" and you'll find references to the Golden Girls TV show and discussions about two significant issues older people face: the high cost of housing and loneliness.For younger people, we call this "house hacking," where someone buys a house and takes in roommates to help cover the costs.

What my question is, is that I am getting awfully close to having too high of a debt to income ratio to be approved for another mortgage.

But in today's market, with prices at very high levels, it is hard to cash flow at 100% financing.