Using rental income via a short term leaseback on the new residence will not help your DTI unless you're getting financing as in investment property - it will only give you cash income to pay for the new mortgage until you sold the old home and actually moved.

It's a 3BR 2BA home and I was thinking of doing student rentals as it's close to the university and makes sense as a student rental.

After completion of construction, do we condoize and sell the single family and ADU (separately) and keep the DADU for rental and living while in town?

When I've studied my competition in the past, I see people ripping into cabin rental companies, Vacasa, you name it, for things I think they'd never complain about at my place.

I’ve researched the rental market here and it’s pretty good.

@Abigail Irvine so you don't show enough income to qualify for an owner-occupied mortgage, so that leaves DSR loans on rentals as your only option.At the minimum 20% down required on DSR loans, your $20k barely gets you to a $100k purchase. 

What would be safe neighbourhoods, reasonably priced and investor/ rental friendly.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $302

Cash invested: $7,500

Multi family unit

What made you interested in investing in this type of ...

@Kenton Guidry   Hi Kenton,  I have had replacement windows installed at my primary residence as well as at one of my rentals. 

The UPDATED rental comps around the area shows $850/month/unit.