@April TsotsosI think as we age, our risk appetite decreases, especially since our W2 income stream is coming to an end. 

There's only one way to improve DTI on a loan application - add more income or decrease the outgoing debt.

Even if they balk, it exercises your creative muscles. 

Your money is whatever balance you have in your account, if you bought stocks or options and they increased in value, their current value is yours (same if they decreased in value).

Although, this particular unit has only 1 bath, you decrease the rental price by approx $100-$200 (roughly speaking as it depends on the location/town/city/state) and that'll do it.

That’s a great question, if rates decrease and you cash out refi into a fixed rate loan in 3-4 years then 25% down is a better deal, but only if you have the reserves and the risk capacity to cover if rates increase in the next 5 years.

Reason being is that they could up and leave one month which will decrease your cash flow without much ability to prepare for it. 

Naturally your mother should have noticed a smaller (if non existent) monthly rent roll, if rents did decrease, and they were still taking money for that escrow.

@Hau Nguyen - Help me understand the numbers - you say Gross Rent's are $1,900/mo then you state your operating income is $1,620/mo - where's the $280 decrease stem from? 

These would specifically be problems for Flippers and Buy/Hold Investors For example, to prepare do you run the numbers for potential rental property based on percentage decrease in rent amount?