So basically in my mind this would not be a great financial move as we be accruing about 200k more in debt if we were to sell one house and take the cash from there and use it as a down payment.

Take people's advice and also dont take people's advice, make a decision that best fits your situation. 

If multifamily properties in your area are priced well, it might be worth moving forward sooner rather than later.Risk Tolerance: Since you’re the sole provider, it’s crucial to ensure you have a solid emergency fund to cover unforeseen expenses, especially during vacancies or repairs.Long-Term Goals: Think about how this investment fits into your long-term financial goals.

This is a great first step into your financial future.

Very few readers have had to deal with this situation?

Hey Gene, for your situation, you probably need to get a fix&flip loan to acquire and do the renovation.

You could tap the $400k of equity in your primary, but that's a slippery slope with the little financial discipline you appear to have and could quickly lead to bankruptcy.

If the prospects look financially shaky or sketchy, I ask for the name of a co-signer - and collect payment for a background check on them.Verbally, I also ask when they are interested in taking occupancy, and I tell them the application will be made part of the lease agreement - that I can evict them if they've lied in their application.

.: @Michael PlaksBut you don’t know his situation.

Legal consequences and potential financial loss that could have been avoided with timely updates.2.