How to get out of Primary home loan and ready to buy a second?

[Zachary Phelan]

I just bought a home. Conventional 5% down. This is my first and primary home. If another deal hits the market, and I want to buy it. What steps do I need to have in place so my debt to income is back inline?

I have one guy renting a room and can have a lease in place to "prove" income. I can have a second lease in place to show that the mortgage is being covered and the property is cash flowing.

Will this suffice to buy again with 5% down?

I don't want to buy with 20% down, because I am remodeling the homes. I am not exactly sure how the 25% equity plays into all this. If I remodel and get another appraisal to show 25% equity the lender......?

I have heard rumors of having to prove renal income for 6 months or 1 year before your DTI changes?