Hey @Chris Dawson, There is alot to unpack here, but please note your wife getting her real estate license in of it self does not qualify you to use those losses (created by a cost segregation) against your active income.

I'm curious if the income from these rentals, listed on Schedule E, will be factored into my Debt-to-Income (DTI) ratio.

Previously we have rented the whole house to one group - it's great for friends, multi generational situations, etc. 

It's always a good thing to have more properties earning you passive income and more properties to pull cash out in the future.

I don't know about you, but in 30 years I'd rather be sitting on a million-dollar asset that I own free and clear (because someone else paid it off for me) that is generating multiple, multiple times the rent I was collecting when I first acquired it and in which I can fill a vacancy with a qualified tenant within two weeks because the area is so desirable that it can't keep up with housing demand than on some boondocks asset that I only purchased because it was the cheapest thing around and "cash flowed" $200 per month on paper but barely appreciated over the years and whose rent appreciation has marginally kept up with inflation and takes me three months to fill a vacancy with a "qualified" tenant who even then might get behind on rent because his hours were cut at the gas station 30 miles away (true story; my tenant worked at a gas station in Boron--only job he could find).Personally, I'm keeping my 4-unit in Santa Clarita and investing in development deals and notes until an incredible off-market deal lands in my lap (keep dreaming, Logan) or the SoCal market cools.  

LTCG, STCG, rent income, a little Sch.

I then declined due to income and credit; which is still an area where we can decline.

In advance: know what credit score, income, and equity are needed before you purchase to be able to achieve this every five years.

I’ve been steady focus on multi family to create passive income but that idea is starting to seem slim since I haven’t been able to find any within my budget or in a good location.  

We want the to be able to have more buying power later this year as well so we don’t want to jeopardize the debt to income ratio of both of the  partner?