I have amazing credit (760) and zero debt and I purchased 2 homes this way.

Just contact a collections agency and send them proof of the debt owed (could be the signed lease agreement or a judgement if you have one).

Any amount that you are negative carries over and affect your overall Debt to income ratio.

But ultimately all tenants leave, all debt comes due, and you're going to need to backfill it, so who is that, what pool of tenants could you consider?

Yep - your lender will be using an undisclosed debt notification service until after the loan closes.

Although banks prefer a homeowner to avoid foreclosure, lenders will take possession of and then sell a property if the owner falls too far behind in making payments.

I have no problem handling the debt with my overall income, but the bank is putting pressure on me to do something now. 

Buying quality assets with a larger amount down, making improvements, and paying off debt could get you there relatively quickly. 

The reason is I want to separate my personal debt to income ratio from my real estate investing “business” and of course reduce personal risk. 

.: Quote from @Chris Seveney: @Dana YobstBlows my mind how he is out there still teaching classes and going on as nothing happened but it sounds like these debts are not getting substantially paid down.As many of us know, one of the main reasons he's able to continue on is with the help of this other self proclaimed criminal https://weclosenotes.com/ep-nc-03-protecting-yourself-using-a-corporate-veil-with-aaron-young-from-laughlin-associates/ Using a remote entity to limit liability is a life blood of insuring investment into all types of job creating, life saving and life improving business development.