That's a commercial loan and is evaluated by the NOI. 

Keep the insurance in the homeowners name (you become an additional insured), get a durable power of attorney from the homeowner, and make the payments on time!  

You want the net income after all expenses like, maintenance, utilities, taxes, insurance, property management (if needed), if the property is vacant figure that in, and Cap Expenditures (any big ticket items that might need fixing or replacing once you own), things like the A/C unit, water heater etc.

Brian Jameson If you show a loss YoY on your returns, most of the traditional long term financing options will be closed to you, including Fannie/Freddie and typical bank loans.

They gave loans to people who couldn't possibly repay those loans, especially when their adjustable rate mortgages increased. 

I was ready to close on my home until the appraisal came back way under (VA Loan sometimes do this).

To add insult to injury, I also received notice that the property in un-insurable.

Hi, I currently own a duplex with my V.A. loan and I have just started a LLC with a couple buddies.

No tax returnsMinimum credit score 650Max Loan to Value 75% on sfr or 2-4 unitOnly up front cost is for appraisal and creditRates in the 7's with a 30 year amortizationAgain, points not to exceed 4You don't have to sell your beautiful flip when it's done;  keep it, manage it, profit from it.  

Instead of one conventional loan, the lender now requires two separate loans (split total price) to purchase.