The requirement in question is:  Mortgage Payment Expense to Effective Incomethe max ratio is 31%Can one include rental income from the other units in the building in their "effective income"?

@Scott Miller hit that one on the head - metering is much more effective, for a similar or less cost per unit, leaks and heavy usage are easy to detect and will be more beneficial in cost savings.

Shouldn't it be a legal nonconforming property if it was built before the zoning took effect?

I mostly buy properties cash and seller finance them but I think that might be effective.

When overbuilding takes effect, obviously there may be some price relief and sure a little better pricing, but with demographic trends the way they are these days, don't expect to see bargain basement pricing on multifamily any time soon.I work for a fund that is continually buying, buying, buying.  

Effective, sustainable, profitable, and delivers the optimal return on your time, skill, and money.One of my favorite Warren Buffett quotes, "Price is what you pay, value is what you receive".The investors I know that are most successful and who I most want to emulate, challenge me to focus on asking more powerful questions that will likely lead to more powerful answers.Here are some resources and areas of study that I have found to be extremely valuable.1) Public libraries & especially law libraries (nudge nudge wink wink) contract law, real estate cases and guide books that are state specific.2) Understanding title 3) Public record searching4) Studying marketing and human behavior: What influences people to say yes or no?

With purchasing my house only a year ago would it have a negative effect from the banks point of view?

:)THE FRONT DOOR APPROACH:Potential Gross income - vacancy & collection + operating income = effective gross income - operating expenses = net operating income - annual debt service = before tax cash flows***is this correct for the formula for the FRONT door approach?!?

I saw that inventory is down to only about 4000 homes for sale in the entire area, down from a high of 24,000.How has this been effecting your business?

The place where the effect of Actual Cash Value coverage can be felt more significantly is in the smaller losses in particular, especially with older properties.