Qualifying for loans on second or third deal - How to do it?

[Kevin Farrell]

New investor here and looking for duplexes to start but I really would like to go to larger multi-family deals. While I can think of a few ways to work my first purchase, I got hung up while thinking about future loans. I have a mortgage on my current home. I am certain that I can qualify for a conventional loan for a duplex with 20% (estimated) down. After that my debt to income ratio will not look good to conventional lenders anymore.

Do most people cross this line very early in their investing and go to other money sources? I haven't seen this aspect discussed and I am very curious what you folks have experienced. If you have a link to this topic on BP or elsewhere, please let me know where to look.

I need a good mentor in multi-family investments in Indianapolis.

Thanks,

Kevin