Rent absolutely counts towards income in their DTI calculation.  

I have a good understanding of the rest of the process and don’t have any problems with the collateral portion of the loan, but I am concerned that my DTI could give me problems depending on how much rental income the will count/ what expenses they add to my debt or subtract from my income.

Your total expenses are 33% not counting PI. @ 50% of rental income you will have $675 to cover a debt payment of $809 a month.

I'm not exactly sure how it all works out but I wouldn't count paying down principal as a valid way of compounding money.

My lease does say they have to give me written notice for important stuff and that text message does not count as written communication to me.

Studying and doing research on RE also counts as taking a step toward that goal.

Count me in! 

When calculating DTI, rental income is counted at 75% of what is the lease.

Its just an agreement that you will not disclose any info you receive about the property.The best thing to do is ask if you can do an on-site inspection and get your own unit count.

It could be that you unit count has exceeded this threshold and that is why they are increasing your premiums so much.We have been using State Farm for the insurance on our properties.