I use a property manager so that is an added expense but he has been a god send to this point.  

My point would be: if your DTI is higher than 49%, how would you be making money from it anyway (given that the rest of your expenses to run the property are likely to be circa 50% of its income)?

Reality on the ground is exact opposite due to investors not properly accounting for expenses such as maintenance, capex, legal, property management, pest control, landscaping, travel, etc etc.

What makes this particular property special is that it is in DC, which is a very expensive market by the way, and it has high end finish such as custom cabinets, marble counter top & hardwood floors throughout.

You need a legal professional who is tough when needed, wise and very experienced.Legal expenses are deductible against taxable income if you're structured properly.Then again, this is the type of expense you should only need to put out once.All that said, of course, it sounds like you need to be dealing with the local LLC-friendly banks. 

I have focused on minimizing my expenses so that my "financial freedom" number is lower. 

In Ontario, I find it hard to find properties that will cash flow at the 1%rule at the least when taking into account all the appropriate expenses.

It's not a problem with the concept of building a 2-4 unit property, the issue is all about the large capitalized expense costs vs. benefits.

It has to cash flow after all expenses or you're just buying someone else's money pit 

Specifically, they will be looking for capital for a down payment and operating expenses and reserves, capability to obtain financing in an amount sufficient to close the deal.