@Collette Douglas I don't know about the Armed Forces aspect of that regulation, but my guess based on how it's worded would be that it applies to the 183 days part only - that the property would still have to be your primary residence, just if you are on active duty and outside the state for that reason, then you wouldn't have to count your days.As for the 2 years, I don't believe it's simply owning for 2 years, but that it's occupying it personally (as your primary residence) for 2 out of the last 5 years.

If the numbers work, it could be a steady Eddy investment but don't count on any miraculous appreciation.

Conversely, while seeking financing on a triplex, we had a lender count the financing of two five and six unit buildings into our debt load (they were financed as residential via RBC and CIBC), but disallow the revenue from those properties (under the guise they were commercial).Always best to have a frank discussion with your lenders and brokers before you arrive at the point of financing.

Two is needed on my taxes for me to count rental income right?

I should also specify that for now I think of cash reserves as an "emergency fund" for the property, so I count this separately from the money I set aside for repairs/cap ex. 

I have a SFR investment property here and have been actively managing it the last 10 years and counting. 

@John Warren I’m planning on doing this later in the year so I can pile up more money to be safe, but if you could recommend me to a lender that will allow me to count the rental income without any prior landlord experience, that would be great.

You cannot count on it always being available.

If that is the case, you are not going to be able to use the rental income to count towards your ability to pay the loan.

You can amend your return (however, underwriters will see if its amended, hopefully they have no problem with you doing that, many do and particularly if its right before a loan application) . this is all my opinion and no promises:Certain deductions on your return do not count against your income and the main one is deprecation .