In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.  

Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.

I used the 75% rule on the income and added it and my DTI without the rental goes from 24% to 38%.Or does it just allow me to just take the net profit of that rental and add it to my rental? 

Additionally, regarding the legal structure, an LLC seems to be the most suitable option for our situation.

Mortgage lenders will qualify you for a higher purchase amount for multis than they would on a single, because they will count the rent you will be making on the other units as additional qualifying income for your loan application.

Quote from @Zach Howard: Quote from @V.G Jason: Quote from @Zach Howard: @V.G JasonTo someone just starting out (only option of OOS) who can get access to 200k, but no additional financing at this time but an additional 50-100k max in reserve cash, where might you recommend they start - markets/property type/strategy?

The only additional thing we do is send them to collections.

Incorporating a washer-dryer hookup in the main house could be advantageous.This addition not only increases the convenience for potential renters but also adds value to the property itself.

If things work out, we'd like to have at least 1 additional property before the end of the year and have 8 in 8 years.

Her husband is also a GC who can help build additional units as needed if you get something that can fit an ADU.