In some situations, the lender’s analysis may determine that using alternative rental income calculations or using lease agreements to calculate income are more appropriate methods for calculating the qualifying income from rental properties.

If RE is the way you want to invest, I'd recommend one of 100 other methods to invest in RE, especially starting out.

Cash flow is my end goal, but in order to reach that point where I can afford those kind of properties I'm left with the method mentioned above unless someone can give me any better ideas.Please, anyone reading along this thread; would you please give me some pointers if my mindset is not in the right place or there is a more optimal route I can take.Ideally, I'd like to keep my potential business partner because of the fact that he would cover any labor costs in the present as well as in the future and is giving me full control of the property in terms of tenants, decisions on holding / selling, and what to do to properties in order to appreciate their values.

I want more experienced real estate investor’s guidance, opinions and ideas on how to go about it.Below are some of the tasks that I am planning to undertakeFinalize a state/county/city/Neighborhood – How to I arrive on an area (GDP, Population, Employment, real estate growth or any other criteria) ?

You want to evaluate the different kind of financing available to you and what each method of financing offers you. 

Often times tenants have divorce, car accidents, loss of employment and health issues.One of the things landlords have to be careful about is tenants want to make their problems the landlords problem.First your want to let her know that you are truly sorry that she is having medical problems.If you are wanting to waive some of the rent is totally up to you, but you do need to remind her that she still has financial obligations and needs to see what arrangements she could do to have the rent paid right away.If you have any emergency contacts for her on file youu may want to check with them and see if they are able to help her.I would also recommend that you get a real estate attorney that is familiar with evictions and consult with the attorney.

Originally posted by @Stephen Chittenden:You can use some strategies (such as 1031 exchanges) to defer taxation, but otherwise the profit on each flip will be subject to taxes.You can't do a 1031 on a flip property...In general, all flip income will be subject to ordinary income taxes at your marginal rate, plus self-employment taxes. 

It sounds as if this 401k is with your current employer, so you likely do not have the option to move that to a self directed IRA.  

It's just that my income is from self employment and kinda hard to convince banks to lend me hundreds of thousands of dollars :(

This lets them decide if they want to wait to find out - or allows them to move on immediately if they have to move on to another place quickly.We don't refund app fees for applicants who were not chosen, since we pay a fee to the background check company, and spend a fair amount of time speaking with past landlords, employers, and references.As for choosing the right applicants it's usually a combination of their credit, background, references, and the impression they've made during the process.