Hi
I am in a situation where I need some advice. I recently bought a 2 unit multiplex which has section 8 tenants. This property is in Tarrant county TX. Before closing the previous owner gave us leases and based on...

He does not have any records of expenses, so I would assume 40%. 

I don't think that would have been possible without have a long relationship with a single lender and a strong track record of performance.

In year two, it may still be too high if you claim any purchase- or setup-related deductions during your first year income tax return (i.e. say you net $20K on the Airbnb property, but you claim $8-9K in depreciation and $10-12K in furnishing expenses; the tax record will reflect that you lost money when you in fact improved your cash position by $20K). 

We closed out 2019 with a bang as median SFH prices increased by 9.93% over 12/2018 per MARealtor.com, showing up at $412,250, another record high.

I expect it is regarding the position of the loan in recording.

To get around this, you need to have a good relationship with a bank, and show a strong track record that you can not only increase the value of the property but maintain that strong performance.  

But you will need your name on title (deed from your parent's estate to you and your siblings recorded publicly with recorder's office) before you can get a loan.

And regarding "direct assumptions", there are no assumptions on the 15 minutes. 1)  I provided the form he needed to complete that I acquired from the actual investment firm I was trying to work with, it took *me* 5-10 minutes to complete it myself.  2) If he chose to just believe me and sign it only, then change my time estimate to 2 minutes to find a pen, sign it, and maybe photocopy for his records. 

When you sell a property your proceeds at closing generally will be 8-10% below the sale price due to 5-6% realtor commission, settling escrow accounts, county deed recording fees, etc.At 80% LTV you can get the mortgage insurance payment dropped, you open up the possibility of other non-FHA and non-owner occupied financing, you give yourself a cushion to sell if needed, and you reduce the possibility of being upside down if values pull back.