We use a lot of caulk on damaged wood to help fill in gaps, etc - especially up high on the sides of houses.  

Here’s a quick break down.I can’t get approved for a loan because my DTI is about 5% too high with the property.

Hi @Adam Pervez New Jersey has very high taxes, with that comes very high rents. 

You then look at what a $72K post-tax net return is relative to the initial amount of capital deployed and determine if that is a good enough return to justify the investment.

I would not recommend using appraisal gaps because if the appraisal is less than the offer 1) you are overpaying for the property based on the value set by a skilled independent appraiser 2) you have to come in with a bigger down which impacts return, reserves, etc. 

You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a tax strategist willing to work with you throughout the year, not just when preparing your tax return.

Another reason to raise rents if you go to sell the property it will be harder for a new investor to get a DSCR loan because the rental income is not high enough for the purchase price. 

Unless you have a very high income it is pretty risky to invest in additional properties when your portfolio currently takes money out of your pocket.

Best case on a DSCR is usually high 6s/low 7s and up right now depending on the scenario. 

But, it also means more work in managing, tricky loan processes, higher start-up costs, and the risk of market changes.Lubbock, with its high need for rentals and low-cost living, is a top spot for duplex buyers.