This property then to a lender looks to be negative $750 a month against your DTI.So really your DTI plays in based on what price point of property you are buying against your incomes and debts.

Income?  

We are a growing family and need more space and of course, more opportunity for income building. 

Main problem is net income doesn't cover the debt service so while there should be some long term upside on the assets I am having difficulty finding interested investors.  

I stumbled on some information about short term rental tax benefits as it pertains to lowering W-2 Income. 

That could crush buyers who already are tight in coming up with enough money for a down payment and closing costs.

Not to mention I got to write off over $175k from my income taxes using a cost-segregation study.  

Or the other likely problem - negative cash flow (the income projections aren't addressed here, and it seems highly likely based on the financing.)  

Net Operating Income / Property Cost = Capitalization Rate

What if it sits vacant for a month, and you lose the entire $3,500 rent income plus the cost of utilities, lawn mowing, and other expenses?