I've seen many newbie investors whose first action is creating an LLC and all they did was waste money and didn't realize that they could not get agency debt within their LLC.

Non owner debt service ratio requires more down and no second.

So, is your debt servicing capability limited? 

You can do it as a joint venture where you partner will also likely sign and guarantee on the debt, or you can have an investor provide you debt.  

With no debt I have been able to purchase several small multi families where the rental income based upon the leases has added to my income.

CoCROI is really strong here too, and your debt coverage ratio is almost twice the requirements for most lenders where I live.

Remember that these are the same people who would happily lend you $ at 29.9% on a CC and have you in debt for the rest of your life.remember that these are the same people who would happily lend you $ at 29.9% if you'd go for it

The interest expense should follow the use of the proceeds not how the debt is secured.

It's more like borrowing money from a really rich, conservative person that has few rules that they really care about (LTV and Debt Service Coverage)The last few deals I have done are in the 3.5-4.0% range with 20% down for a 20 year AM/5 year balloon. 

If I have that correct, then the only 2 options on a personal basis would be to either do a bank statement loan or a DSCR Debt Service Coverage Ratio loan.