View what types of debt and how much.

@Roy Gottesdiener i think you should seek a legal and financial advice to ask a about your situation and start from there.

No debt!

Fortunately I currently have no debt, I think in the next 12-16 months I will be able to accumulate 40k including money I already have saved. 

Is it a real issue if it’s not considered a legal triplex?

The question is whether or not the benefit of getting the third property without any additional cash out of pocket is worth increasing our debt. 

If you can buy great deals though, say 70-80% of true market value you can have a safety gap between your debt and equity.

@Brian Garrett Focus is on the asset, but they'll still check on the borrower's PFS.Usually looking for net worth greater than the size of the loan, and liquidity to cover 9 months debt service.

having spent a decade in the timber business in Oregon I call it Oregon porch time.. these are not inner city dwellers these are folks that you need to sit with and talk  have coffee and build reporte'if the homes are nice and clean and saleable probably tough to buy under market unless your good at looking someone straight in the face and telling them their 300k home is only worth 200k.. that is a moral issue.Also be aware that you CANNOT legally sell a home you are not in title to in Oregon.. its selling real estate with out license and don't listen to all the people from all over the country that wholesale.. many states its an accepted practice in Oregon it is not.Also if your flipping homes IE coming into title you also need a developers license in Oregon  talk to @Karen Margrave she just got an education on this.. the state is cracking down on flippers.. its a 5k fine.. usually 1k first time. 

The result may have been different had the investor required the homeowner to see independent legal counsel regarding the initial transactions to prevent claims of ‘over reaching’ and ‘duress.’"