From my experience Chicago is peculiar, but if you buy well, the multifamily properties can significantly reduce your living expenses and quickly build equity.

I deal with smoking cases at least 20 times every year since I operate in a state where marijuana is legal. 

@Bala Nagarajan  The marijuana smell just sticks to them even when they are just around it.

I only own one unit.Since they moved in some neighbors have been complaining about marijuana smells supposedly coming from my unit multiple times.

I recognize the significance and peculiarity of each deal and given your efforts at reaching a compromise by asking for credit, it seems to me the seller didn’t want to do the deal.

But when they are more lax in one area, they tend to be tighter in others, such as capping out at 60% LTV or rejecting a borrower who has done dozens of loans elsewhere because of a marijuana felony on their background check from 30 years ago in a state that has legalized it.But back to the original question... yes I agree with everyone that most DTI-based lenders will still count the DSCR debt against you, regardless of whether or not it reports to your credit. 

My tenants appear to be respecting the smoking outside policy but I do occasionally smell signs that they’re smoking their marijuana inside.

One particularly peculiar case involved John Beck.

Michigan is still enjoying its tax money on Marijuana currently but I can clearly see an overabundance of these types of stores which cannot possibly all survive.

I will have to try to get a good gauge of how peculiar an investor is prior to accepting their money.