Taking Second Loan w/Good Debt

[Vito T.]

The Strategy: Purchase single family homes with 20% down and live in them for two years to qualify for owner occupancy financing on a conventional 30 year.  After I have lived in the home for 2 years I proceed with my next purchase and rent my former abode.

The Problem: Very difficult to secure conventional financing.  My only debt is a mortgage, my credit in excellent, and my income stream is average.

The Question: How much should I be paying down my existing mortgage before I can realistically qualify for a second loan (to finance my next property?)