The rehab only increased the value, where value is not a function of NOI on residential properties, but a function of price per sq. ft. comparable sales, or “comps”.Debt service coverage ratio (DSCR) is a function of annual NOI and principal & interest (P&I), and is calculated as NOI / P&I.

How much income will it generate, and if you're living there will that be enough to cover debt service and still leave you with a cushion?

Use it as additional collateral or a debt parking spot.

A friend of mine and fellow investor has a debt free portfolio and his peace of mind when Covid & the shut downs happened was 100x anyone else who wasn’t sure if the market was going to crash or what.

If your BAH is $1285 and you have no auto or credit card debt you about $160000.

My thoughts are that I have purchased the tenant debt along with the property ownership, since I’m honoring their leases.

A better way to look at debt is to measure your overall leverage.

Good points from @Ashish Acharya  as far as the accuracy of the K1, the business income should reflect the actual net profit of your company, and the distribution amount should reflect the amount of those earnings (or capital funds) that were withdrawn from the business (to your personal accounts).It would make sense that a lender would want to see the funds actually flowing out of the business to make sure the cash is there to service the debt.

@Christian Weber If you don't have other consumer debt or car payments I'd seriously consider the cash-out ReFi.

The USPS does go through budget reviews often and many smaller Post Offices are constantly at risk of consolidation which should be taken in account of your calculations.