@Jonathan BlancoYou have received a few good replies so far.

Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.

So if you are doing an addition, you are only contributing to the structure portion of value, not the land value.

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Buyers usually want to purchase on today’s value while sellers often want to use future potential of the property (“current rents are below market” or “room to build an additional property”, etc) to increase the purchase price or likelihood of a sale.

I used the 75% rule on the income and added it and my DTI without the rental goes from 24% to 38%.Or does it just allow me to just take the net profit of that rental and add it to my rental? 

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I haven't heard of the ability to add additional $250k primaries, but I'll have to dig in to try to learn more about that!  

You can later transfer the property to the LLC, but be aware it might trigger due-on-sale clauses or additional costs.

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