With prices as high as they are and income not keeping up I think more and more families will buy property together. 

I read that rate as paying an extra month and half worth of your annual rent collection to buy income insurance for the year.

If not, we’ll need to have one ordered for you.Entity Documents (NEEDED FOR PREAPPROVAL):LLC/LLP i.Copy of Articles of Formation/Incorporation ii.Copy of fully executed Operating Agreement/Partnership Agreement (all pages & amendments) iii.Certificate of Foreign Qualification (if applicable) Corporation i.Copy of Articles of Formation/Incorporation ii.Copy of fully executed Corporate Resolution designating authorized signer(s) for the Corporation iii.Copy of fully executed Corporate Bylaws iv.Copy of stock certification v.Certificate of Foreign Qualification (if applicable)Identification (NEEDED FOR PREAPPROVAL): Copy Driver’s License or Passport for each Guarantor.Rent Roll (NEEDED FOR PREAPPROVAL): We’ll need to get an understanding of the current cash flow of the property.

Both a cash out refi and a HELOAN have options to qualify you based on FICO and the income from the property - your income, employment and DTI are not factors in this case.

You should already be separating business and personal completely, otherwise the LLC is useless, and they can pierce the corporate veil.

Do the two rentals combine and then offset W2 income or do they remain separate? 

They give you multiple-income streams that help protect you against the threat of vacancy and non-payment, and you can often substantially reduce your cost of living by purchasing as an owner-occupant and living in one of the units while you learn to become a landlord and property manager.

our deal flow has increased significantly, and our income is up almost 100%.  

The reasons are 1- less competition in commercial2- greater property types lead to more opportunities for “value added”3- commercial net income projections include expense for property management, 1-4 unit residential usually do not4- greater “universe” of properties to buy allow higher minimum return standards Of course residential is MUCH easier to successfully deal in, and with reasonable leverage has small downside risk, so I 100% agree that most investors should stick with residential.  

However, I talked to my realtor who got started in real estate via room rentals and he shared that as a 'border income' situation you actually have more rights than a traditional landlord.