I'm currently in Potomac, working at a private school here. 

If the septic is only for a 2/1, then the county/city wouldn't approved the expansion as the current septic doesn't work for it.Most likely this would be a pass.

Many of these lenders allowing 2nds behind them are more expensive capital (10's - 13's in our current market [high rates - but now showing signs of coming down]).

I currently have a small fund that is completed. 

We currently don’t accept sections 8 applications.

Can I use my current homeowner policy and just increase the limits?

Hi Kyle - we have two development projects currently in DC.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

It sounds like you're in a great position with $100K in equity in your current home!

Lenders do not look at your personal income or debt and will use the current market rent or lease (up to 120% if the lease is significantly higher than market rent or vice versa) as qualifying income.