Based on that rule you will have $2400 in monthly expenses, which only leaves $2400 for debt service and cash flow. 

It also depends on which type of institution has the debt.

Like mortgage defaults, and other debt obligations, non-payment of rent is a civil matter of public record and concern.

If you need a Commercial Realtor let me know and I will forward a couple of names to you.When you have found a property, I also suggest you submit your deal for a pre-approval right away so that you can confirm the property will debt service a mortgage.  

I will manage these buildings, I currently manage another 4 unit building in the same area and know with updates the total rents could increase $3-4$k/yr.Current Rents:  $3900/mo $46,800/yearVacancy: 10% $4,680/yr (actual vacancy rate for area is below 5%)Taxes: $3838/yrInsurance: $2840/yr for cash value not replacement cost (getting more quotes)Maintenance: $4500/yrUtilities: $6,500 (owner currently pays common electric, sewer/trash, and buildings are on well so softener salt and electricity for water pumps.)Budgeting $5k/yr for capexLeaves: $19,442 for debt and cash flow

Make sure you can cash flow after accounting for all of the expenses and debt service.  

Since I'm buying SFHs it's easy to determine my cash flow (after debt services, maintenance, repairs, capex, vacancy and property management).

They will look at your income, debt to income ratio, credit score, savings, etc. and let you know what you qualify for.

Does this include debt service?

Hello Laura, how about partnering up or joint venture with someone that has good credit and low to no debt .That may be an option to consider