Wanting a 3rd property. Mortgage broker says DTI too high. But we have cash for 20%

[Cora Hunchak]

I have two properties, 4 doors. Two of them are str, and 1 is long term. I live in the other.  The idea is to rent out the space we currently live in and move into another space which we plan to renovate and house hack. 

Im recently self employed. Husband still works full time. 

Mortgage broker is good, but one of the str's hasnt been running for 2 years yet, and she said banks hate str as considered income so when she runs our numbers (income), she runs MARKET rent on both str's which is far less (1/4 of actual income) .  Therefore, she is saying we cant get another mortgage for the properties we are looking at which are around the $600,000 mark in my market. 

our 2 properties are fully renovated and have a good amount if equity in them. 

we also have the cash for a 20% downpayment and then would have cash for renovations, but we dont really want to have to put down more than 20%.

FEELING stuck.  What would you guys do? 

[Nicholas L.]

have you looked into DSCR loans? requirements will be tighter on income and likely 25% down. but DTI won't be a factor