Also from non collateralized debt to collateralized debt. 

I see unexplainable debts (possible amounts owed to prior landlords) and late utilities as bad, but the rest is just the poor personal fiannce habits or life circumstances that make applicants renters rather than owners.- Having roots in the community, normally having lived in that neighborhood for several years, or in this case being close to her parents adds screening points.

Since I have that debt and hold the only income for my family, I currently don’t make enough to carry two mortgages till those are paid off.

that is also my only debt. i still live at home & single. 

I bought the home using the HELOCs already, so the debt in those is being considered in my DTI. 

Since we are a combination contractor/real estate investment company the construction side isnt making money on this so if you have to pay a contractor you're looking at almost double that.

My further research indicated that any deficit in return on original loan amount is considered a "non-business bad debt" treated as short-term capital loss, but foregone interest is excluded (because individuals operate on a cash basis). 

I have very good credit and low debt/income ratio, but the work history seems to be holding me back.

Can we discuss the pros/cons of getting a cash flow property that has a renter in it already vs. getting a new renter in areas that are not rent-controlled? Can you always offset the DTI ratio with market rents, or do...

@Mario Gonzalez NJ has a couple things working against your plan, when it comes to finding off-market leads. 1. it's tough to get a  list to mail to because most of NJ combines single and multi-family homes when the report to the list compilers. 2. it's quite competitive.