There is a high demand for rentals in B areas, but the entry point is much lower for you.Good luck!

It would lower you P&I payment a little more.Hope this helps.

There are limits to going lower and any of that money that isn't spent on property will be taxed (called the boot).Things get tricky when you do combos as an option, then you run into limits of how much they can be worth etc etc.

I believe that the flips in the lower price ranges go fast, but now you are getting into a higher grade of property which might see some softening moving forward. 

In my case, I never lowered rents on an existing tenant during the recession (olympia, WA 1 hour south of Seattle).  

In Indiana, you might want to check out the NW corner, which is part of the Chicago metro area, but with Indiana's lower taxes and much more landlord friendly environment.

Almost every lender will finance a single family for 5% (sometimes lower) if it is owner occupied.

For example, you might be able to pay higher loan origination fees in order to secure a lower long term rate.

If it is worth getting my dti lower, would it be better to reduce debt (and debt payments) or increase income (by purchasing rental property with cash, or something of that nature)?

I would start negotiations with those that seem the most likely to leave at a lower rate in case the tenants begin to talk.Some questions that would help everyone out would be.Current RentTarget Rent# of unitsPurchase PriceCap Rate being purchased atCap Rate you could sell atOf course you may chose to keep that all confidential which is definitely reasonable, but if it is possible to share that info, it might be able to help people kind of get a better picture of things in terms of a dollar amount.Good luck!