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.

A smaller paid off portfolio seemed a lot easier to manage so that is the path I was on.. but I've come to the realization if I ever want to accumulate serious wealth I will have to use leverage and scale big. 

THEN, I plan to purchase the second home using a FHA or conventional loan (3%-5% down), for which I will likely pay the monthly cost out-of-pocket, maybe with some rental income support if it is a duplex.My concern is, I do not want to spend my savings or weigh down my debt-to-income ratio so much so that I cannot qualify for and pay the down payment and closing for the lending on the second home.Questions: - With the first home being multi-family, 75% of the rental income (or potential rental income initially) will relatively either maintain or boost my debt-to-income ratio from lenders' perspectives, right? 

Or do they leverage debt, and use the subsidies to cover the equity needed?

The vast majority of wealth accumulation is through appreciation, cash flow after rents increase, and amortization. 

If the property can service the debt at 90% leverage between a senior 1st and the seller second, you're looking at a good investment!

It may not appear this way on the surface but you are going to come out ahead by focusing on purchasing fewer but quality assets rather than becoming a door accumulator.

You've done a great job with keeping your debt low so I have no concerns about your level of discipline to use/reuse a line of credit.All the best!

(Your $12k down and your new $24k debt.)The “trick” in regards to less than 10% down is people think they bought and asset or have equity.

Look into a DSCR, Debt Service Coverage Ratio, loan where the rental income can be used to qualify the cash out refinance instead of your personal income.To Your Success!