We have 2 W2s( Me+ Spouse).Have a primary residence SFH and 2 rentals.I have around $40K of rental income after all the deductions/depreciation.This time I used a CPA and I am a sure he tried his best to get all deductions possible.

If you're at a loss and paying off the shortage still puts you at a loss I think your best bet is selling, or seeing how you can get more income from current rents by making it mid term/seasonal or an air bnb. 

The only method that really comes to mind is BRRRR, which I am not opposed to, but would prefer something a little simpler for a first time deal.Similarly, I'm making an assumption that it might be possible to use a combination of HELOC and DSCR loans on something a bit more turnkey for the initial purchase and then refi into conventional after a year or two rental income?

This means that they are going to look at the ratio of the Net Operating Income (NOI, or income - expenses) divided by the monthly debt service (your monthly payment).

Given that you have no income, and it's likely you may not meet the material participation threshold for 2023, the loss would then be kept on form 8582 to be used to offset future years of income from the property in the form of a "carryover loss"

The benefit on DSCR is that it will ignore your personal debt to income ratio for qualification, but you don't get the low down payment options of owner-occupied conventional or FHA.  

Rental Income Powerhouse: Can the property bring in enough rent to cover your costs and leave you with a healthy profit?

Right now we require two incomes in order to afford the mortgage and looking to downgrade/rent for a while and be a single income household so wouldnt be able to pay the mortgage for the house unless its being consistently rented on FF.

Economies of scale helps a lot lol  You can even look at ways to generate an affiliate income from tenants which doesn’t affect your landlords in anyway and offers value to tenants.

I have read several threads on this, but I am a newbie and still a bit confused.We are married filing jointly with an income close to 150k last year.