Banks are getting tighter and may have unperforming assets, so they are looking at their portfolios and becoming more picky, for lack of a better word.When the economy is ripping, banks loosen criteria.

Are you sticking to traditional banks, exploring private lenders, partnerships, or maybe something creative like seller financing?

These strategies can allow you to acquire properties without traditional bank financing, which can be beneficial given your current DTI and income situation.

1. check if your jurisdiction allows detached ADUs2. check if you can split ownership of the two homes 

There are several benefits of having cash in the bank/liquid reserves versus an open end mortgage (a.k.a) credit card.

But....But what if that Bank, financed via borrowed fund's itself, say something like where they themselves only ever had 10 or 20% of the capital they financed and borrowed the remainder via some big bank-2-the-banks?

Remember you are using debt to make this investment, not reserves  sitting in your bank account so I recommend a more conservative investment approach. 

This of course depends on your starting bank roll - but if its like mine (under 100k) - Im trying to put as little as possible into it on top of initial equity and fees.this will likely chew a big hole in your ROI  (now if you are looking to improve value with a cash out refi or a great prospect comes along that needs combo new plumbing, roof, windows, foundation repair, etc - well just make sure you know what youre getting into and/or have a good contractor and finger on the pulse of the market when estimating the ARV YOURSELF - couple missed items and you risk having a bad first investment and not doing it again).    7) dont be scared be ambitious ( i should heed my own advice sometimes) 8) define numbers goals within your target areas.  

Horse stable in the middle of LA, 20 acres 1/2 swamp next to major airport in Florida, church with 6 acres in the middle of town, contact bank Trust departments and let them know you want to buy.

Commercial bank or local business bank - where they will fund as much of the purchase price and rehab budget as possible, typically will have a lower interest rate than option 13.