Can rental income from a basement unit in my primary residence improve my DTI after I report the income on my schedule E? 

Currently my husband and I own three rental properties along with our primary residence.

He told me I would have to fill out a rental application after the current residents received their eviction notice and moved out.

I have an awful time with it b/c I bill all my utilities to my residence, and there's no mailbox at my VR, so theoretically no way to verify my totally legitimate house.  

I just went trough the same process myself and settled on a HELOC because they were significantly cheaper than Home loans (I borrowed against my primary residence as opposed to financing the property I was buying, so as another responder pointed out, this was essentially a “cash” deal because the money to buy the property was not tied to the property itself).

Account Closed  One other important point to keep in mind - if you're buying a new primary residence (a home where you will live), there is no limit on the number of financed properties for conventional loans. 

It's hard when it's a personal residence,  but if it's going to be a rental, I always look at things and say "what's the hardest to destroy?"   

We owe $35,000 on our primary residence valued @ $140,000.

Should we wait until we have saved enough money for a down payment on a multifamily or just purchase purchase single family home as our primary residence with 100% financing?

Shawn, as a "disqualified person" to your IRA you are not allowed to receive any personal benefits (using investment as a residence) from your IRA.