No, don't use the average principle paydown, use the actual amounts per the payment schedule.

I wish I had more houses to rent out, but then again I guess I'm really just wishing for more/better qualified applicants.Thanks for letting me rant. 

In terms of the actual loan structure, it depends.

I guess I’d look at the tax returns and see if he declares his income and is making 3 x rent. 

thanks man for letting me know. i actually have a home office at the house so i will just claim the home office on my taxes. really appreciate your response

So, I guess in short, stability has a greater priority, while in the long term, I lean towards possession and wealth building that maybe even my children take advantage of. 

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

But if you do not, I would pay for it this time (not what you want to hear), and then moving forward have it in writing that if you come back her the bill will be paid for by the actual causing tenant or split by both parties. 

I guess I could assume that since someone is pitching this to you that your property/soil is right for it...but that's a pretty big assumption. 

Any actual/paper losses with your rentals will be carried over year after year as PAL.