This last works best where the locale is community focused or well established.

I know you should estimate rehab costs before you buy to establish an offer, but what about working the equation backwards?

Communication pointer.... you and your tenant need to establish early on how you will be communicating.

I know the big thing behind this is making sure that I disclose and establish how exactly I'm helping them but if i do this accordingly is there any reason why this wouldn't be a good business model to follow?

I want to address this in the letter to begin establishing rapport.

You will use 75% of the rental income for the first two years you hold the property to establish the true cost of the property, after its been on two tax returns it goes to actual income/expense per your return.One thing I'm confused on, I have heard you have to have two years history owning rentals to count rental income, I have no idea if that is true or not

FHA is 2 years but there is no straight rule on BK requiring 640 fico it just depends on the investor/bank/lender.I can do BK in 2 years (with ext circumstances 1 yr after CH7 but this is very hard to qualify for) for CH 7 with ficos down to 580 if the borrower has "re-established credit with no lates in the last 12 months and/or since the BK occurred,"Its ideal to setup up to 3 tradelines (credit cards, installment loans, or other) just to show good payment history of 12+ months to show the lender that you are now managing credit responsibly ever since the BK.Some banks can go down to 500 fico's (not us) so its possible FHA and VA have no real "credit score," requirement per say but lenders impose these.

Kyle,First and foremost, establish a budget. 

They probably consider the RE income like self employment income, they need to see two years to establish stability. 

Failure to disclose and omission of the truth takes your credibility to zero.Before I accept contracts I call the loan officer listed on the approval to verify.