They are due for a rent increase that has not been completed by the previous owner.

But it may prevent you from borrowing more due to the increased debt to equity ratio. 

However, with increased popularity comes increased competition.

I do think that prices will drop as the Fed rate increases. 

If that's true, you may not see increases in rent or equity for quite some time.I also wonder if you have a reserve?

You must have basis in your S-Corp equal to at least $0 in order to deduct the losses.So now you have to contribute more money to your S-Corp in order to increase the basis with the opposing entry being a Shareholder Loan. 

IF so you may not be able to refi unless there is big price increase in the market around your area.

Start by running the numbers through a comprehensive rental analysis calculator (the one on BP is great), and get a picture of what your real cash flow picture looks like after you account for *all* expenses.I don't know what market rent is in your area, but if you have one or both units at below market value, you should definitely find a way to increase them.But, my gut says this property is still going to struggle to cash flow.

My ultimate goal is to buy and hold rental units and continue to increase my portfolio over time resulting in an impressive real estate empire i can pass down to my children.

In most cases, you can increase rent slightly, and get it rented while the previous tenant is still footing the bills.