Quote from @Lionel Quiambao:  ... and maybe throw in the option for the tenant for more speed at an increased rent to cover the additional payment. 

The entire lots level has to be increased.

I’d recommend looking for properties that already have stable tenants or need minor updates to increase rents down the line.

Building a sport court will run like $30 grand, but would increase your rental value. a 6bedroom 4 bath house with a sport court, hot tub, fire pit, mini golf, arcade etc. will most likely crush it because it's cool.

It's usually better to earn $200 less a month for one year than to sit vacant for two months, particularly in the winter.Consider a bigger drop for a 6-month lease to get through winter, then increase rent or find a new renter in the spring when competition is hotter.

Overall nationwide cap rates are rising because of interest rate increases.

•If you can, raise rents or find ways to increase the property’s income before applying again.Have you already tried talking to multiple banks, or is this feedback from just one?

Personally I’d do a 1031 to save $40k, I’d skip the LLC, increase the limit on my umbrella, and call it a day.

Demand is increasing as India/China economy is growing, while number of Teak trees are diminishing.- Even if all of you reading this planted a 1,000 acres; that would not but a dent in the demand, and decreasing availability.- If the world goes into a recession or depression. 

Four properties provide diversification, greater potential for appreciation, higher aggregate depreciation deductions, and increased cash flow over time but involve more management complexity and higher leverage risk.