Question for Commercial Lenders/Mortgage Brokers

[David Murff]

Hey everyone I appreciate your time and answers!

My question: 

I’m planning to go with a value add approach to 5-12 unit apartments in Kansas City area. Through my research I’ve found traditional bank financing may be the route to take as they have better structure for exits(less yield maintenance concerns) and loans include funds for improvement. I own a home(my home) but am concerned I may not have the net worth to secure a commercial bank loan. 

Would it be a good strategy to acquire a smaller residential property/properties to pad my net worth so to speak? Considering commercial lenders do not look at DTI would a residential portfolio help me secure financing from a traditional bank lender?

(Not interested in Fanny/Freddy as I don’t currently have a KP/would not meet Net worth or Liquidity requirements, I have no track record, would prefer to have improvement funds included, and plan to stay under 1MM for first property.)