She can no longer afford the $970 mortgage payment (That includes property taxes and insurance).

You will want to study up on that and locate a CPA to work with for the IRA tax filing of form 990-T.

However the one staying has to show proof of income that they are still able to afford the rental amount without the roommate.

I could, however, rent it seemingly for the long term and still come out ahead each month with the higher loan amount post-cash out, so affordability wouldn't be an issue.

Looking for anyone who has gone through Dohardmoney.com or T-square lending or IntercontinentalPL.

I am not completely broke but what I can afford is mainly marketing myself.

The money situation worked out like this:New loan payment on Seattle house goes from 2300 to 2900 a month, 4 bedroom 2 bath houses are renting for 2900-3000 a month around where I live (3 miles from microsoft).I pickup the new house payment at around $3300 a month, something I can afford and will put some sweat equity into to force appreciate it a bit over time. 

In that scenario, people will not be able to afford every day items let alone real estate.

I'm trying to build some extra cash flow with wholesaling so I can afford down payments on property's.

On my low-end stuff ($30k-$100k), I do half of first month's rent, otherwise no one could afford to move in.