So your purchase price between yourself and the seller would need to cover the debt and fees.

So in that case you'd be better off going conventional with 85% LTV for a 2-unit and 80% for a 3-4.Lastly you could look at a DSCR (debt service coverage ratio) program, however those are intended for pure investment and carry higher rates, costs and longer closing times.Hope this all helps.

My view is that if you forego the tub you eliminate most families with young children. 

A conventional loan will get you a better interest rate, but have stricter requirements with regard to credit score, debt to income, down payment.Just my opinion, but if it's your first property, reach out to mortgage brokers in your area.

Most RE project finance is either Equity(shares and shareholder loans), Debt or Hybrid(mezzanine finance,  preferred equity).Suppose a multifamily township development project has LVR or LTV of 60%, 60% debt capital can be raised, how should one model remaining 40% finance such that highest developers margin can be achieved after all the payoffs.Thanking in advance

A 5% down payment is definitely reasonable, good credit, no debt.

At some point doesn’t debt to income tap out or your credit to the point at which you can’t acquire any more properties?

I would think they should be able to show paystubs for the year to date earning divided by her hourly wage to establish average amount of hours per week and then see if that corresponds to her W2's for the last 2 years and if they all match up and her debt to income ratio works, move on.  

So if your $3M property was producing a hopefully-too-conservative 4-5% return after expenses and debt service you would have the same cash flow with an enormous amount of paydown to boot.

if your name is  on the mortgage it is still your debt.