Caleb Heimsoth thanks.Agree, 30-40% offers a good cushion.For some time now I have been playing around with the idea of tapping into the equity of my rental and primary residence to put it to better use elsewhere.

Canadian investors are particularly interested in the area, funneling $326.2 million into North Texas over the past 12 months.Job growth and economic diversity were cited in the report as driving interest, though 49 percent of respondents reported “strong economic basics driving rental growth value” as the primary reason they’re putting their money in the region.

Your credit score, DTI, and proof of liquidity for the down payment are the primary qualifiers for residential financing and lenders will calculate them using the credit reports they pull, the application you complete, and the tax returns and  bank statements that you provide them. 

Any duplex property after that will require at least 20% down payment even if it is a primary residence.

If I want to make a formal offer and ask for seller financing do I use the traditional purchase and sale agreement or do I need an attorney to draft specific paperwork with my term?

I am a 32 year old male, great W2 job(130k annually, firefighter/paramedic), I have perfect credit, own my primary residence and have plenty of money in the bank.

Debt is from a mortgage on our primary residence and student loans.I'm now in a situation to either reduce debt or increase my regular income (via paying cash for rentals/purchasing notes/something like that) to a point where my dti would be more attractive to lenders.

Hi Ken,I obtained a HELOC against my primary residence here in the DC area several months back.

I purchased my primary residence for $100k, put 20% down, and it appraised for $142k upon purchase. 

I'm assuming you can't go out and get traditional financing?