Hi @Rhea Jeong,The situation you're describing is actually pretty common, especially for first-time investors looking to maximize their purchasing power.You’re correct that some lenders will consider a portion of the rental income when determining how much you can borrow, typically in the 75-80% range especially for FHA loans.

Rental Strategies and STRs: ADUs don't need to rely on short-term rentals to be profitable.

Would enjoy hearing feedback and advice on what beginning steps I need to take to get this thing rolling. 

You’re making the classic mistake of pursuing a deal just because the property owner didn’t give you a quick no.If you want to pursue for some reason just make them an offer that’s good for you and after they reject it you can go forward with finding a deal that can be purchased at an “investor” price - or at “investor” terms.Here’s my bias - I don’t waste my time worrying about how much the seller paid, how much he invested, how much he owes, the asking price, what his motivation is (which is probably a lie or “half truth” anyway), whether he’ll be “insulted” by my offer, whether he’ll “like” me or “hate” me.  

I think that you need to evaluate the house after renovations with a mortgage payment and assuming all expenses.

These things don't matter as much as getting in the game sooner rather than later. 

I've never been to the former, but I'm in Detroit a lot.I've never felt the need to carry a firearm and I don't feel unsafe in really any areas.

Managing it, and building a relationship with the city will make it easier for you to start investing in non section 8 rentals and doing the work it needs to get them approved by the program.

I finished school when I was 16 and now, I'm 17 years old and I'm making 36,000 a year from my w2 job, I know there's not much I could do as of right now but what should I do to set me up so when I turn 18 I can start my investing Journey.

I doubt your current loan would care too much because usually it’s only looked at when underwriting….