The deal was adjacent to a current 4-plex that I own -- makes things easier for operations and better for lowering expenses (Trash - 1 dumpster instead of two), cap. improvements, etc.

The reason they do not allow 100% of the rental income is because they assume 25% will get eaten up with maintenance, repairs, management, etc (they are effectively accounting for your properties operating expenses) With that said, they place a cap on the qualifying rental income at your PITIA (principal, interest, taxes, insurance, association fees).

More importantly, egress window with certain operable area requirements and a sill height of no more than 44" from finished floor.In my specific village, add to the above minimum of 150 sq ft.Finally, as others mentioned, legally having a bedroom and functionally having a bedroom can be vastly different.  

Hotels closed, operated at limited capacity or became undesirable due to people wanting to avoid close contact.

The first two should be used to evaluate the market you're considering, while the latter should be used on a property by property basis (including them in your operational costs).

I operate by being an open book.

In order to be successful at it, I would advise developing your Core Four: investor friendly realtor, reliable contractor, sophisticated lender and a reputable property manager.

When you are finding your monthly net cash flow, are property management, maintenance, utilities, capex, etc percentages of gross rent, or percentages of your gross cash flow (net rent - PITI)? I usually say 8% for pm...

@Sarp Ka I believe the best way to do this would be to stay off title and have a separate operating agreement with this partner, though I am not a lender and this is not lending advice.

I did however make a promise that I intend to keep which was that I was leaving my job at the end of 2021 and go full time into the world of real estate investing, so I started my LLC in Jan 2021, with the intent on being present as the owner operator and building the company starting 2022 and beyond.