I was told I cant increase the number of units that I can only decrease them.

@Antonio BodleyOne possible issue is if you are signing on the loan, your credit will dramatically decrease once you take out a balance transfer.

I've seen the demand for the medium sized units decrease which in our market is around 3k to 10k sq ft.

Me, not vocalized quite as strong: Until the startup bubble bursts and your salary decreases by $75k + housing prices tank.

If you can keep your own living expenses to a minimum for just those first 2-3 years before you have kids and need to move in with the significant other, you're on a far better plan.Your options to live below your means decrease as you have a friend / fiance / spouse as well as you add kids into the mix. 

Your analysis seems to infer that these properties cannot be profitable, which I find surprising.Your additional statement of 160 units potenitally being profitable further implies that there is a deviation (+ and -) from 126 in which income exceeds (more units) or expenses decrease (less units) enough to where the math does make sense. 

If my properties are occupied less than the competition, i'll decrease my price.This takes me about 1-2 minutes/property per week!

I am equally clear when there are "problems" with a property...parking issues, angry pit bull next door, close proximity to neighbors/noise issues, inadequate electrical service for multiple kitchen appliances, no trampolines allowed, etc. etc.

This is fine in a rising market, but hard when things to get soft.Personally, I always hated having the value of my building dictated by how other people were managing their buildings.That's why I made the move to larger multifamily properties where the valuation technique is based more on Net Operating Income (Revenue - Expenses).This is an important difference from smaller residential buildings because it allows us to execute the value-add model whereby we go into the property, increase rents, decrease expenses, and ultimately increase the value of our building.After we've driven up the valuation, we then execute a cash-out refinance (typically within the first 2-3 years), returning at minimum 60% of our initial capital.

A rising DTI means a lower or decreased credit score.