If you are not sure you have enough cash on hand, work with your lender to confirm you will look good to the bank before the bank reviews your application.Your Debt-to-Income RatioAlso on the topic of money: the bank will look at how much money you bring in, and compare that to the amount of debt you currently carry.

If you are not sure you have enough cash on hand, work with your lender to confirm you will look good to the bank before the bank reviews your application.Your Debt-to-Income RatioAlso on the topic of money: the bank will look at how much money you bring in, and compare that to the amount of debt you currently carry.

Get rid of debt, build a budget, and save.

I'm assuming you have no experience buying notes so you should read a few books, Invest in Debt, Note Investing Made Easier and watch all the podcasts from Scott Carson. 

Any lender wants to see a good credit score, which you're working on, and a good Debt-to-Income (DTI) ratio.

As far as showing your home as a business debt rather than a personal debt, that one may be a matter of bookkeeping.

@Scott D BurrowsMy biggest delimma is my debt to income ratio...

My principle in this scenario would be $6K.Cumulative cash flow - Total cash flow for this time period (Total Income minus total expenses, including PITI)Debt paydown - Initial debt balance at purchase minus current debt balanceMarket appreciation - an increase in appraised value without extensive rehab. 

-Find a market/people you want to invest with OOS.OOS would provide cash flow, debt reduction/equity build up, depreciation, etc on multiple properties and all of which would support you buying more properties. 

., initially unequal co-ownership but where you could buy back X% over time until you get to 50-50, or something else entirely).Seller financing, as @Dennis M. said, is another great creative strategy, it's a variation on the partner theme, except the "partner" is debt partnering with the former owner.