The incoming rent is more than sufficient to cover any extra monthly fees incurred from the new loan product.  

If you tell them you charge $100 extra per month for a dog, that could eliminate some people.Are they currently employed or do they have a stable source of income (pension, disability, etc.)?

the my way or the highway .. its a business blah blah blah that we see posted on BP works in certain segments of the rental market but for D class  your wearing many hats and have to have a desire to go the extra mile etc.

I have been using rehab grades (light, medium, heavy, extra heavy) with a corresponding $/sq ft. ie.

@Gittel Grunstein I can understand the general concept of leveraging the extra cash in other investments, but how could I buy other houses with 5% down each? 

You're only as strong as your weakest link ... select your partners wisely.Some of the cons of the 203k are higher interest rate, extra loan costs, and longer closing timeline (+15-30 days), but if you value the pros more, then the 203k is a great option! 

:Basically rather than using the reverse mortgage as an extra security for retirement, can you use the reverse mortgage as extra 'income' to show lenders & potentially qualify for a larger loan?

Just spend a little extra and avoid the hassle and expense of ripping up and replacing old carpet in a few years (or less if there is pet urine).

She said she is willing to pay extra to stay.

I think they can work on a small scale to make a few extra bucks but they won't make you wealthy in the long run based on my experience, who I have spoken with etc...