Analysis:Rental of the Property Applicant Occupied Prior to the New Loan Use the prospective rental income only to offset the mortgage payment on the rental property and only if there is no indication that the property will be difficult to rent.This rental income may not be included in effective income.

Living here in SoCal it could be difficult for someone new to investing without a ton of capital to get started, but so many investors (including myself) have done it and it's absolutely possible with the right strategy.  

., but just getting the winning bid is super difficult.

I have my doubts that $30k worth of work will add $120k in value, it will likely either cost much more to do the rehab or the value increase would be much less. 

I attended the FHA home owners education class and received the certificate of completion, so I am working with the lender on the 3.5% down and down payment assistance, so I have less money out of pocket and can focus more of my funds on renovation and increasing equity.The properties I am looking at either have basements that are finished, or basements that I can finish myself to rent out separately either on a month to month basis, or as an AirBnB, or they have detached garages that are big enough to convert to a studio, or AirBnB. 

Sounds like it does not have proper cleanouts, either, making it difficult to get a cutter in there. 

@Jermaine Riggs   Remember the 6PsPrior Planning Prevents P*ssPoor Performance There are steps that you can be taking today that will better ensure you will be able to qualify for the best of terms on your purchase in TX.1. have a Mortgage Broker run a Tri-Merged MORTGAGE credit report and pay the extra $15 for them to also run the "What If" score increase simulator to know how best to pay down debt in the interim2. start eating MREs and saving like a maniac until you close as the more money you can show in reserves Post-Closing, the better the programs you can qualify for.etc,etc,etc,   

I see opportunity for a healthy NOI increase within the same time frame.

it is a mortgage, but in reverse.. the interest is added to the loan each month.. so instead of his mortgage balance going down, it increases every year.. it will all depend on what the original number the back put on the house at the time of the loan, and how long he's been in this program.

What would be the best percentage to use when analyzing income,expense,prop value increase?