Yes, you hit the nail on the head.
One needs to have the foresight to have sufficient funds (cash/loc etc) set aside in advance prior to hitting the DSR wall otherwise they will find themselves in a catch 22 situation having painted themselves into a corner.
This is why I have said property investment is not about property, rather its about finance.
Property is merely the vehicle being used as security to continue accessing borrowed funds whenever you want - for investment, business, or lifestyle purposes.
so basically say your 2 ips away from hitting the serviceability wall you would instead of purchasing an ip you would gather equity and cash and get a cash bond then buy the ip so in 2 years (when the CB income can be used) you can purchase the next one and maybe top up with another CB?