In general 10% of valuation in gross annual income.

The reason is that you are paying a 10% withdrawal penalty AND income tax on the money.

The added income is not needed to make the numbers work, but I was just thinking of ways to get more out of the property. 

The DSCR is a bit more expensive, but it only cash-flows the property and does not require them to do a full-income documentation loan to you.

That enables you to live in the community you love, gives you extra income to pay off the house faster, and you won't have tenants trashing the place.

I would think there is value in building this equity, only using the income from the monthly rent collected (no additional out of pocket cash each month).For example, if Year 1 of a 20 year amortization pays down say $3,000 of principal balance on the loan, in my mind, my balance sheet gained $3,000 of equity (a positive). 

I am interested in buy and hold deals to generate a large amount of passive income so that I can angel invest and be financially free.

Question to the apartment owners, management companies, single family portfolio investors and the like.Would installing solar panels on your income producing assets make sense if there was no upfront installation cost and you could "bill" the customer for electricity that the sun produces for each property?

Should I count on rent going up in coming years & count on the condo appreciating? 

The applicant has no verifiable income (he is an artist and woodworker), but has basically zero debt and an excellent credit score (almost 800).