When a lender is calculating DTI for an individual, who owns real estate but does not have 2 years of schedule E returns, will he/she recognize 75% income from the properties if the properties have 6 month leases rather than 1 year leases? Does this also apply for the FHA loan?
Almost all lenders like 12 month leases. So make it a 12 month lease. But the penalty for breaking the lease after month 6 is $25, oh and BTW you discount first month's rent by $25.
As for the rest of your question, can you provide more detail? For recently acquired properties, how Schedule E is prepared, and exactly what numbers appear on what lines, is frequently make-or-break. I hesitate to answer without that in front of me.