How do you get by the Debt to income ratio to grow your business?

[Michael Littleton]

Hi All!

I am a part-time investor, own 5 long-term rentals outright and just getting into the STR's (just bought one in FL a few months ago, using the 2nd home 10% down strategy). I have listened to Avery Carl's book, Short Term Rental, Long term Wealth about 15 times, so far.  (shout-out to Avery! this is hands-down the best all-encompassing book I've ever read or listened to, by a mile) . 

I have a few questions like: 

1) How does everyone get around the debt to income ratio? We have very little debt outside of the STR we just bought on a conventional loan, have excellent income, but I fell like we will basically be limited to buying one more STR. How do you guys get past this hurdle? My goal is to have at least 4 STR's and keep the long terms going to cover for the STRs if occupancy rates decline (ie, another COVID situation or something worse).

2) I have read a lot about maximizing potential and buying many homes in different markets as 2nd homes.  That's great, but what do mortgage companies and the IRS consider to be a "different market"?  Is this simply a different county within a state (more than 60 miles from the first?), or is it a different state, etc...?  I'd like to know the details behind this, as well. 

Thanks

Mike