Now the normalized rate is used for qualification purposes, so it's never done.In theory you might have someone at a 20% DTI who would prefer to be at a 15% DTI for that first couple years, but IRL people at 20% DTI are those very same people who can just do the math to realize that this heavily favors the bank, and such a person (who could qualify either way) would never do it.I certainly applaud that you're looking into wonky guideline provisions and how you might hack a glitch in the matrix, but this is the wrong glitch to be trying to hack, unless your time machine allows you to travel to 2005. :)The closest to this that now exists, for the cash heavy but income modest, is buying out the PMI upfront on a conventional mortgage, rather than ever making a monthly PMI payment.

If the Section 8 applicant meets your qualifications and you end up selecting them, you’ll fill out a lease with them like you do with everyone else, plus a few other forms, and submit it all to the Housing Authority. 

Think a list of qualifications that applies a weight to each trait:Credit Score - XPets - XIncome - XPrevious recommendations - XLength of proposed lease - XDeposits - XTransunion gives you a go- no go decision but the above may help you grade the quality of each potential tenant while being objective.   

Would it be advantageous for loan qualification purposes to become a co-borrower on a mortgage with my LLC (as opposed to a guarantor)?

Matt Radhe most HML’s I’ve talked to have rates that vary based on your qualifications and experience.

Pre-qualification letter from the bank for financing 3.

I deposit most of it and report all of it, as write offs help more than hiding cash would and I need to show at least a decent income for loan qualifications down the road.

The big banks I have gone to so far have said they can't include this new rental income in my qualification, and I need two years of rental income to show before using it in my qualification.

The big banks I have gone to so far have said they can't include this new rental income in my qualification, and I need two years of rental income to show before using it in my qualification.

For loan qualification purposes, you might be better off capitalizing.