It would definitely help to keep the credit cards balances as low as possible and many lenders don't want to see your debt to income ratios more than 30% and no large cash deposits or withdrawals, the bank will pick apart your statements like crazy!

She holds great credit but a horrible loan to debt ratio.

These numbers coupled with debt service could make this deal look less than ideal.Try running this through the 'Deal Analysis' tool here on BP and see how it looks.

Will the first property show as debt and hurt me from getting a second mortgage ?  

And finally do you account for the mortgage balance as a long term debt?

My debt ratio will be way too high to get another loan and I also know I will have to get a commercial loan because of the amount of units.

Now that my second rental is filled I can take the next steps of reorganizing this debt. 

Keep in mind Debt service needs to be filled in meaning based off my calculations they lose money every year. 

you first need to determine if there enough equity to warrant all the effort.I suggest secured debt < 50% LTVHere's my format:PropertyEquityTitleInterest(s)OpportunityNo one dies without any heirs.

@Charlene M murrill It depends on your income, credit score, the source of your funds and what other debt you have.