It allows you to slowly turn over the property into the higher market rent while keeping vacancy loss and rehab costs more spread out.

No offense but I assume you don't have any loss prevention training or experience, and I assume you won't want to take on liability if something in my house does go missing while you show it. 

As far as partnership splits go, a lot would depend on whether they are just a lending partner and only earn interest on their money, or an equity partner that shares in the profits and losses.  

the purchase process is the simplest part of this journey, it's the duration and exit that will make you money (or loss).

Rents should be prorated for the loss of quiet use and enjoyment of the property.  

.- Maint and Repair, 10% of income is a good starting point- Vacancy and credit loss, if the property is run well, 5% is a good starting point- Utilities- Advertising- Legal (evictions, lease advice)- Tax prep- Property management placement fees (usually 50-100% of one month's rent)

I am curious how rental income is calculated in the eyes of the lender and how that plays into the DTI.For example, I know a rental with positive cash flow can report as a loss for tax purposes due to depreciation.

You can write off your losses for tax purposes.

That will depend upon the profit/loss you show.  

A bigger bath would more than outweigh the loss of the shelving unit.