Plus if you have all your income going out the door on debt service how do you plan to finance these new kitchens and luxury floors?

You have to qualify with the standards that were in place: FICO number required; debt to income ratio same or better...

A Tribute to Julio Gonzalez @EngineeredTaxDear BiggerPockets Community,As we traverse the intricate landscape of real estate investment, it is imperative to delve into the profound significance of proof of income, specifically the last two years of income tax returns, as mandated by lenders.

Here are a couple you might explore:Sec 121 Exclusion you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse.

More on DSCR loans in case helpful: DSCR loans won't use your income to underwrite the loan.

I also think that they only take 80% of the rent income into consideration.

I also establish income, credit, and background screening requirements that are customized to my market and property type. 

But it kinda works for me and I get the warm fuzzies knowing I have some diversification.Also, if you're 27 and have an income allowing you to invest in real estate, I'm guessing you work with some other 27 year old looking to park some cash somewhere as well.

Also, he's been wanting to move out of his current primary and rent that out for LTR.I believe that would work out ok as he's looking to offset some income from the LTR of his current residence.

You get to deduct other ordinary and necessary expenses against your passive rental income don’t you ?