I'm anxious about making any financial mistakes that will cause me to be in hot water with the government since I am not sure how to report income from an investment property. 

@Rose Ganoryou're not missing anything.  3-5 years gets you started.  10-20 years starts to get you a real portfolio that can start replacing W2 income.

I intend to hold onto the property long term and yes I would be willing to live there if there was no income potential.

Use any CPA and treat it as normal income. 

It doesn't matter if not on your mortgage credit report, it shows on your income taxes. 

Make sure the rental income comfortably covers your mortgage, taxes, and other expenses.

I have two questions. 1)I was reading an article that gave the following example:"John Doe has $200k of taxable income on his W2 and buys an $800k 6-unit property.

Yesterday my job was eliminated, so my main source of income is gone, however, I have $1,425/mo coming in from a condo that's paid off.

Yes can do it 25% down on DSCR no income no doc .

Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.