If it's DTI and they are giving you a hassle on using rental income from the departing residence - you can usually work around this by ordering an appraisal on that property or showing a lease agreement dated after your departure.

From what I understand so far, the asset matters more than the borrower's income BUT many lenders have a "net-worth" requirement.

What income do you show on your IRS returns as net number?

You can access the equity via a few different ways to purchase your next property (cash out refi / HELOC / etc.) and since you'll be doing everything by the book and all of your tenants will have leases, you can use those to help with your DTI (debt to income) for future purchases.There's a lot there.

Both my husband and I are W-2 employed with a combined income of $185KWe are not planning to flip the home.

In my opinion: Your current income is a major factor. 

You are paying 8% interest on all that money that is not being invested which means you are paying 8% with no income on it coming in the door.

While the potential rental income of 4K is noteworthy, it's essential to consider various factors.The local real estate market conditions, property management costs, and potential maintenance expenses should be factored in.Additionally, evaluating investment alternatives like the stock market is prudent.Renting out a property can offer long-term benefits, but careful financial analysis is crucial to determine if it aligns with your overall investment strategy and goals.

Accounting Simplicity: Creating a specific bank account for each LLC can streamline accounting processes, making it easier to track income and expenses for each property.

Some states have zero state income tax.