Future finance options

[Damon Aniton]

Gearing up to get my 2nd property soon. Likely near the end of the year or latest early 2024. My W2 income is already rather high. The high end of 6 figures. When it comes to qualifying for the optimal loan amount on my next property. I have a duplex. Am I better off having both units fully rented as an LTR when considering DTI for the next purchase? Or will 1 LTR and 1 STR be considered equally?

[Damon Aniton]

Quote from @Dave Skow:

@Damon Aniton- thanks ...good planning ...yes you are  better to have the untis both being LTR ...depending on how long you have owned the  rental -  the lender  will likely use your  2022 ( and possibly 2023 and  2021  tax returns  - schd E.... to determine the rental income used for qualifying  .....even if your rental income is low  or  even  negative - hopefully  your  large  w2  income will be ample to carry the  qualification ratios 

I will cash flow $1100 if I rent both units. I cleared $280 on W2 this past year. If I have my calculations correct I should be good up to $920 on a 4 unit for another VA loan. My goal is to qualify for every penny of that to use.