Thanks Tyler, at this point I have more time then money, the company that wants to school us, wants us to use credit cards to pay them and buy a property. 

Hi I am trying to get a refi through that got a refer on DU, Borrowers score has gone up to 699 from 679 but his 3 tradelines are with same co, at zero bal he has 1 late on tradelinehe is W2 his ratio is about 46% and DTI 80% +.But I cant seem to get a true comp that can lower LTV if the guest house is used and the same goes for the income I am using one from Trulia but it does not include GHthe area goes about $500 per sq ft it would increase the value greatly on that alone

Being a new investor sometimes the numbers look a little too good to be true. 

Secondly, so true.

The deal seems too good to be true. 5-7 % without points is very low for PML.

@Ned CareyThat is a very true statement.

For qualification they include usually minimum payments on credit cards etc not the principal.If you're really low income, maybe it's better to find a lender who does "stated income" but there need to be proof: bank statement etc.I'd try another loan officer, maybe mortgage broker who would search for different options.Take a look at the topics here: there were explanations how Rental income would count and @Chris Mason even referred the source where to get the info first hand

If you subtract that from your rental income that is your true cost of buying cash flow (dead equity).

(Business cards, licenses, tool trailers, equipment, etc.) 

It was only the request to transfer money through PayPal rather than a credit card that tipped him off to a potential scam.