However, in example two my net income, per the bank, is decreasing with each rental even though they are making me more money.Is my understanding of this correct?

Also, rents tend to stay reasonably stable or increase and pretty rarely do they decrease by significant amounts.

Leveraged inspection notes to get closing credits and other price decreases.

@Ducote KiernanAn LLC is just an entity that holds the property.You have the right to pay off the mortgage or to take a distribution.You are taxed as the LLC earns the income; not necessarily when the LLC makes a distribution to yourself.Paying off the mortgage results in less of an outstanding balance and a decrease in deductible mortgage interest which can increase your income.

.), over a 10 year period the purchasing power of $1,000/Mo. in rent decreases to about $614/Mo.

And sometimes even it can boost your ROI which is fun but decrease your NOI to a point where you're at risk of being under capitalized.The other point to consider is that when you refi you will not have access to as much buying power as if you simply sold and 1031d. 

When compared to the last “normal” February, in 2020, sales volume increased 23.3 percent;-Days on Market (DOM) for single-family homes dropped from 48 to 41;-Total property sales rose 25.6 percent with 9,299 units sold;-Total dollar volume increased 43.5 percent to $3.5 billion;-The single-family average price rose 13.4 percent to $395,871, the highest of all time;-The single-family median price increased 19.3 percent to $328,000 – also a record;-Single-family home months of inventory registered a 1.3-months supply, down from 1.5 months year-over-year and below the national inventory of 1.6 months;-Townhome/condominium sales jumped 35.9 percent with the average price up 22.4 percent to $266,366 and the median price up 26.8 percent to $225,00 – both record highs;-Single-family home rentals rose 23.8 percent with the average rent up 6.5 percent to $2,052; -Townhome/condominium leases decreased 1.0 percent with the average rent up 7.9 percent to $1,767.

Overtime, as appreciation increases and the mortgage balance decreases, when you reach 20% equity in the property, you could refinance the loan to a conventional loan to get rid of the mortgage premiums. 

Also, I do require applications before showings which I'm sure slightly decreases my application numbers. 

I'd say 25% down is the most common though because of cash flow goals and there is usually a significant rate decrease going from 80% to 75% LTV.