Further, the property may qualify for larger loans based on the increased cash flow ability to service debt.  

You do need to have steady employment, decent credit, and not be drowning in debt.

One factor to consider is your interest rate on the debt.

Quote from @Eamon Conheady: I was purchasing a multi family through an IRA LLC and was utilizing debt to finance it, requiring a non-recourse loan.

This can slightly affect the LTV or interest rate because your loan is based on the income of property therefore we need to make sure that your property is debt servicing at our minimum required ratios.We are introducing new products in September.

Like maybe I could pull enough out from heloc on primary residence to pay off debt and then rent out my primary and use the extra cash to payoff heloc and then do another heloc once the original one is paid off.

There might be some hoops to get through with conventional financing with your income situation, but if that doesn't work, you could use a debt service loan.

Hey Jason - if it's a 1-4 unit, you would need to value it based off the sales comp approach (assuming the buyer is using debt financing).

We replaced the oven after about 5 months and it just came from that separate account.Also, forgive me if you are already doing this but make sure to keep your tenants SD in a completely separate account from your personal checking account.

The seller will also have to sign documents that are required and it will hold them liable for debts since they are on title.Best way to set that up is run the numbers and create a partnership based on the equity of the land and your cash injection and sweat equity.