I'll be buying my first rental in the next 2-4 months, spending the time between now and then reading/researching as much as possible and getting some work out of the way.I figure my wife and I can buy 200-300k of rental property a year using the 20-25% down rule using excess income and not having to alter our life style and not over extending ourselves.  

However, it is a potential weak spot as it is very susceptible to moisture damage and there is a lack of accessibility to make any repairs which is why the GSE's will not underwrite them.  

There appears to be some stains indicating seepage.We just did this kind of foundation repair on a house with steel beams 6 ft oc with an interior moisture barrier and an interior drainage tile with a sump.  

I have a clause that I can charge them for this excess use, but didn't enforce it in this case because of some other issues.In a multi without split utilities its harder to do. 

That means a lender must give excess amount back to the borrower.

Each can give your wife $14K, so if the value of the property is more than $28K, the excess would reduce the amount they can transfer tax free on death.  

Instead, you should deduct the repairs from the deposit and bill them for any excess.  

If this ends up being flipped as a pure wholesale deal, my partner thinks a 50/50 split of the profit between us is excessive since he has done all the work up to this point in finding the deal and, while I'm providing the $16K in purchase capital, I wouldn't be needed to fund the rehab.

My point is....there are tons of funds that have excess capital and nothing to do with it.

My current understanding is that you can't count rental income in excess of the PITI for any given property as excess income to use in your DTI calculation unless the rental income has been on your tax return for 2 years.