In summary, I'm trying to buy another property, I already have a house that's making me X amount a month, but my lender, due to this "rent schedule" is only considering a much smaller fraction of the total amount so my purchasing power is much less than it "should" be. 

Jose,You can buy a home in Memphis, TN for an amount that’s less than a fraction of a down payment in California.

Price points are a fraction of what you'll find in other beach markets like Florida, making Myrtle Beach and the surrounding areas a nice soft place to get started.

In fact, you could probably do better than that in midwest markets with 8+ unit apartment buildings, but of course the catch there is that they will not be in A neighborhoods or may appreciate a fraction of what LA likely will.3) If you're $500K income is relatively stable, I don't see how another property will be stretching you thin.

The primary investor usually has a fully recorded assignment and note endorsement being sure to avoid fractionalizing the note.

Look at the Real Broker, they haven’t been around for very long and have a very small fraction of the agents that eXp have, yet they have a $400M + market cap (only $100M short of ReMax). 

There are always risks and downsides, but for homeowners with a low investment base, they can often secure a greater net return on a property they're familiar with and buyers can often secure a property they otherwise would not have had been able to acquire, now often at a LOWER cost of borrowing, with a fraction of the noise. 

So, only a fraction of millionaires own million dollar homes, which is likely why they are millionaires. 

You spend a large chunk of total interest in the first fraction of the mortgage.

You can easily buy a nice home for a fraction of that price in other cities and have a PM manage it for you.