You don’t need to make many changes other than filing your taxes differently and just budgeting differently due to the lack of one W2 income. 

OROption 2: Go big and do a cash-out refi/203K/HELOC to not only repair the foundation and waterproofing, but to add an extension to the home that would support a legal duplex for some income producing property.

These include higher occupancy rates compared to short-term rentals, reduced operational hassles, and the potential for a stable income that can sometimes rival or exceed that of long-term leases.

My job is to make repairs and get the place lease optioned so it is producing income to cover the interest payments I need to make to the lender.

Additionally, holdover tenant is now subletting out the rooms making income and advertising it on 168.com.

It should really be about the income but some people do secretly want to run up the score on # of doors.

Furthermore, you can deduct the interest payments against your rental income.

You also have to make sure how much would you be netting once you move out and in order to use that rental income for that unit you're planning move out, you will have to get a lease signed for one year and lenders will be able to use the leased rental income at 75%.

I feel as if I have too much debt compared to my income to ever be able to get another loan for the next property.

For example, does your income support carrying two mortgages OR will you need the rental income from property #1 to offset the total debt you're carrying per month.