The expectation here is more income, assuming that your property is in an area where furnished rentals are in demand.

The property is $400k and brings in about $40k in rental income without the residential unit. 

if you buy a random property in a neighborhood you've never been to and turn it over to people you don't know you'll just lose money.not trying to be negative, trying to protect you and your hard earned cash.

@Tony Schmucker Now that you know all of those markets work from a Macro perspective you should look to see where you want to live for 2-3 years and what your and your wife's income will be in those markets.

I started investing a little over a year ago and have earned almost $160k gross so far with 3 Padsplits.Next year if I do nothing, the 3 current properties should earn about $200k gross. 

WIth the new FHA & Fannie Mae legislation, many lenders are forecasting the rental income from additional units, even if they're not a zoned duplex.

Through proactive maintenance, efficient tenant placement, and careful financial management, I optimized rental income and ensured a steady cash flow.

Sorry for the tough love, but not buying the above.You & your wife's salaries should cover your expenses, while the income from your remodeling gigs should be saved.Recommend you review EVERY dollar you made and what you spent it on in 2024.

They've gone as far as writing algorithms that pull data points like crime rates, age, median income, number of coffee shops and hundreds of others to create heat maps of where to buy.  

A debt service loan would be a good option if your DTI is high, you want to close in an LLC, you're self-employed or have low income on paper, or you don't have a stable 2-year work history.