How do you change your investment strategy to suit your borrowing capacity?

With the tightening in credit and the reduction in borrowing power, many investors capacity to invest has been adversely impacted. For example, an investor who planned to invest in two properties worth say $750k each might find that when it comes time to purchasing the second investment property, they can only afford to spend say $400k due to a contraction in borrowing capacity. This begs the question, what do they do? As I see it, they have four possible options:Reduce the budget for the nex...