This will allow you to acquire more rental units and also being able to use the vacated unit rents at 75% to help your debt to income ratio DTI.There is a FHA 100 mile rule if you do plan on using FHA on your 2nd house hack.

This will be our first debt-financed project.

The properties also have appreciated very well, and we currently sit at about 55%. debt to equity ratio.

And the person who said Detroit property rents are so low and won't work for DSCR debt is on crack.  

The CAP on that was fair and enough for me to cover my expenses, debt payment and put some cash in my pocket every month. 

Yep, you can use a product like a debt service loan to close in an LLC. 2.

So for example I'm very conservative and don't want any debt on them because I feel this hardens them in case of a severe recession.

Use Leverage Strategically: Real estate businesses often rely on debt.

A DSCR loan (Debt Service Coverage Ratio) is another option that offers low rates, as these loans are based on the potential rental income of the property, However they are for investment properties only.

Under MD law they would be responsible for the costs of those improvements and would be responsible for restoring it to the original condition at the end of their lease.