If you are self employed you can also look at bank statement loans assuming you have a business with high deposits.

is there a particular formula that takes all manner of factors, (employment growth, corporation development news, barrier to entry, rental rates, wage growth, etc) into account and spits out an "invest in city X" answer?

Do you have any idea how many people these entities employ?

Im self employed and my debt to income doesn't look good on paper.

I could also ask him to provide a report from his business (he is self employed) of his P&L and transaction reports to make sure he is making money etc. 

As long as the property generates enough cash flow to service the debt, you qualify—without the need for personal income verification.This type of loan is ideal for those serious about growing their real estate portfolio, especially if you’re self-employed or have irregular income streams.Why DSCR Loans Matter for Real Estate InvestorsWhen it comes to real estate investing, traditional loans can often be restrictive, requiring personal income verification and imposing limits on the amount you can borrow.

For you, it will likely be business income / ordinary income(non portfolio) where it will be deemed active / passive depending on your level of participation.There are some court cases out there where people who originate 4 or more loans in a year are moreso deemed in the trade or business of lending money.It will depend on the original poster's taxaccountant to determine how he/she will treat the income.The one con of it being business income is that it may be subject to self-employment taxes.

Our lender’s instructions now require all acknowledgments by a notary employed by the title or escrow company.

and "How can I employ a strategy to make this property work?"

Most 1099 self- employed investors generally write everything off so using 1040's, 1120's or 1065's is a no go for tax returns.