Looking to buy my second house hack

[Lorenzo Dudley]

I am a newbie real estate investor in the Utah. I bought a single family home with and ADU basement about a year again my wife and I live in the basement and rent the upstairs and we are currently living mortgage free. My question is we want to purchase a 4plex with in the next year or so but I am afraid our debt to income isn't going to be enough for a second home. What action do I need to take to prove that my house is being paid by tenants? Is two years of payment enough?

[Landon Bleau]

Lorenzo, typically many lenders will add 75% of you monthly rental income to your regular income with calculating DTI. Your collection of rent on your bank statements and signed lease agreements should suffice based on what I've heard. You can also go the commercial route where they look more at the property and not at your DTI, however, you will need 20-25% down typically.