Some questions you might want to ask yourself are:1) Are you happy where you currently live and are the multi family properties you’re considering in a better or worse location.2) By how much will your housing expense increase or decrease if you HH.

@Dustin Sanders as long as 75% of the gross rent is $1 more than your PITI payment your DTI should be decreasing not increasing, ie profitable properties make your DTI better.

Besides piling on to tell you it's overpriced, I'll key on one specific mistake you made twice: A small rent decrease.

@Nick Flint In addition to increasing your credit score and decreasing debt to income ratio, I would suggest you start the lending process early.

I know the financials are sound, however I'd love to have someone model the business and be able to answer questions like "What if conversions decreased by 25%, or the market fell 20%, how does the business model look then?" 

Sound decreases by 50% each time it has to pass through air then mass, and it cannot travel along the wall into the adjacent units when the studs are staggered.

You could also decrease the size of the property you want to purchase.

You'd to work with a lender on this.The other thing is that the higher down payment will decrease your ROI but it will also increase your cash flow.

I had a tenant accuse my contractor of smoking crack in the house and demand I decrease rent 

Should I take the income from the San Pedro duplex and roll it in to about 3-4 more down payments on more units in Ohio which can triple my cash flow and decrease the time of loan pay down or decline the offer and continue to hold ownership in Pedro and hope for appreciation?