This leads to issues with refinancing and could leave you with less equity or higher debt than anticipated.

I didn't realize this.I know you aren't on the lending side per say, but follow up question.If I have two buildings in my name with total debt of $900k and I am looking to refinance one of them that has $500k debt, would the 45% DTI be based on the total debt ($900k)?

A couple of things: - If you put more cash down, perhaps there are opportunities on the debt side that emerge - can you find assumable debt? 

It could also be worth looking into short term bridge debt.

@Joey Samudio, I'd recommend buying the asset with a normal 1031 exchange and then layer on debt for rehab after purchase.

The number of properties an LLC owns can influence DSCR (Debt Service Coverage Ratio) loan approval for several reasons.

I was just approved for $235k on my primary home and I have no personal debt.  

Improvement exchanges are a little more tricky so if you can structure the exchange where all of your equity + debt reinvestment can be dumped in at one time, you'll be able to do a forward exchange instead of an improvement exchange and it will save you on 1031 exchange fees. 

I don't have anyone I know enough to trust as a partner so I'd like to offer debt positions or equity payouts instead of partnerships.

I purchased it with a HELOC so higher interest debt until I can cash out refi.