However I have a high debt to income ratio and live in a house that is way too small for my family so I need another one.

I was able to get a Federal Tax ID online and then opened bank accounts/credit cards in the name of the consulting business, all off of my personal credit report (although I remain responsible for them, it helps to have some debts/credit cards off your personal credit report).

We both have 740+ credit scores, one of us has a higher debt-to-income ratio,  but the other doesn't, we have a decent amount of capital between us, so qualifying for a loan in general isn't the challenge, we just want to be smart.

Your increase in outstanding debt and the type of loans you have in place will affect your score as well. 

What I have since learned was the seller has not defaulted on loan but no longer wants the property so she was trying to sell it and have bank forgive the debt.

@Andrew Boykins you need to decide if you are going to use equity, debt, or a combination of the two.

You need to understand the difference between good debt and bad debt.

as in, if I bought it, does that wipe out all existing debt against the mortgages?  

Every homeowner understands the difference between their mortgage and the equity they have in their home but when it comes to commercial real estate transactions, the difference between equity, preferred equity, mezzanine debt and senior debt can confuse even savvy investors.

and your cash flow is $300 +/- after all expenses, escrow $ for future maintenance and capX, and debt service, then I would say that is a great deal.Do you know how much or what was done for the rehab?