Because you are just starting out, some banks may not consider your rental income in your Debt To Income ratio so you may already be temporarily capped out.

If you have 20-25 % down and good credit you should be able to do a debt service ratio loan.

Now, I'm not used to that - in my world (acquisitions), you identify a property, complete due diligence, arrange debt/equity and 60-90 days later the asset is yours.

This would put it around $120-140K in ARV based on comps within the last 30 days.Current market rental rates for this property are in the range of $1100-1300 per month.Gross expenses are currently at~$850/ month, including debt, insurance, taxes @ 4.75% rate. 

If you assume that your non-debt related expenses are 45%, that leave you with $1100 for debt service and profit (if any).

The question is: When it is time for the tenant to finally pay, does the tenant pay us (the new owners), or the old owner whom the debt accumulated under?

They have a strong W2 income to support taking on debt. 

I recently got completely out of debt....no debt at all!

Suppose the member who owes the debt is a member in five LLC's.

Or if you all think I'm completely wrong and just paying down debt and holding (what I believe is) post tax money in the operating account is just peachy.