There's so much absolutely incorrect information in the above post that I hardly know where to begin....1. 

To answer your question: Yes absolutely!

I absolutely agree with @David Krulac.

Getting a mother-in-low to co-sign is not the answer.

Is it an absolute deal breaker?

We want to plan in the most tax vantaged ways (which includes keeping future AGI as low as possible) and open to new-age and creative concepts.Respectfully ask to keep discussion to topic vs. selling one's self or services seeking new business.

I was thinking of starting a rent increase for my 1 bedroom tenant voucher due it being low and well under fair market value(Based on  hud and zip code) but my tenant is in the process of having a caretaker for her disability and getting approved for a two bedroom voucher.

There is no such absolute rule or mandate for REI - it is up to you on your comfort level with your cash flow versus total investment versus appreciation potential.If I followed that rule, I would have missed out on a LOT of great opportunities over the years.We bought a house in Jones Valley in 2017 with negative cash flow - why? 

With a low 4.75% rate but minimal cash flow ($50–$125/month), your equity could likely work harder elsewhere.

That seems low with the 5 units and storage you mentioned unless they are 1 bed units.