This would allow me to have smaller payments on my primary residence.

So if the Fed cuts in upcoming meetings your rate would decrease.  

The formula for calculating DSCR is straightforward:DSCR=NetOperatingIncome(NOI)/TotalDebtServiceNet Operating Income (NOI) represents the property's income after operating expenses.Total Debt Service includes all debt obligations, such as loan payments, property taxes, and insurance.A DSCR ratio above 1 indicates that the property's income is sufficient to cover its debt obligations, while a ratio below 1 suggests insufficient cash flow to cover debt payments.Lenders usually have specific DSCR requirements, with higher ratios indicating lower risk for the lender.

Every market has good and bad areas so be warey.When considering ROI on single family vs. multi, the multi will provide you with revenue to offset your house payment while you're living there. 

Initial owner was on a contract for deed where, unfortunately, they were unable to meet their payment obligations. 3 investors involved in this deal. 1/3 split up front cost. 30 year conventional financing with one investor assuming loan while all parties had a legally binding MOU.

After accounting for your monthly payment, vacancy, maintenance, management, and a return on the the cash you have to put in, are you still in the black?

Cut the purchase by 50% off asking, little to no renovation budget & still deals aren't cash flowing if you pull any money out.

You'll PITI will go up but you still need to cash flow to make it beneficial for you.2) you can do a DSCR loan which will cover down-payment and rehab cost.

I want to use this equity for a down payment on future value-add projects.  

Talk with a qualified attorney.I wish I had the money to do this, but unfortunately I'm not in any better position myself, although I have the equity, I don't have the income to support any further financial obligations, otherwise I'd just make the cc payments for her.