Building equity and e­arning additional income are potential be­nefits.

offer a fair market price that you are happy with and then in the contract say you will pay X amount additionally over 5-10 years to equal the amount they actually want? 

What was their credit scores?

Additionally, what factors typically increase bankruptcy risk for leveraged investments?

Then you may be able to split the lot and do a construction loan for a new build on that additional lot...

Additional thoughts.  

DSCR loans are a great option for anyone that doesn't fit the conventional "box" - DTI isn't a factor, no employment info needed, no W2s, paystubs, tax returns, 1099s, etc. needed, you can close in an LLC if you want to and many lenders don't report to personal credit, so those loans won't affect your credit score/DTI for any conventional financing you might pursue in the future.

Run a credit/screening report on yourself.

In addition to being part of a few syndication deals in the Houston and dallas area, ill just speak anecdotally: Its very hit or miss and really depends who you get to review the case.

I would double-check what numbers they are using to quote you (credit score, cash flow, valuation).