I want to make sure I understand the Following correctly please......
Come Jan. 1st of 2017 , I will be able to FINALLY claim the Rental Income from one of m Rentals for the First time , and therefore have the Rental Income go on my Taxes as REL Income , and thus Increasing my Yearly Income / Helping to lower my DTI
My Question Is:
Would I be able to then Immediately , claim the Rental Income on another Property ( my Primary ) , as I am strongly considering renting it out at the first of 2017 ( since the 1 year mark that I will have owned my Primary will be up )as Rental income ( Meaning , if I was to go to a Lender for a Loan , would they use the Income from the Rent that I start receiving from my Primary Immediately , or would they only use the Rent I receive from my primary on 2017's taxes ..... I.E. roughly 1 year from the day I start to rent out my Primary residence ?
I am hoping that since I will have owned and been Renting out a Rental property for all of 2016 , that when I go to Rent my Primary residence out , that they will use the Income I receive from renting my Primary residence IMMEDIATELY , as this will help me in getting a Loan to purchase an Investment Property ?
Sorry if my question is a bit confusing ..... I tried to explain it in Layman,s terms as best I could lol
Thanks for the help
They usually count 75% of the income based on what's shown on your prior year's taxes but sometimes require it for two years. This may vary some from lender to lender and whether you're applying for a conventional or a commercial mortgage. Most conventional mortgages will also require 2-6 months PITIA reserves per property.
I had 75% of my rental income counted within 2 months of renting :p
2 months is amazing , How did you get the Lender to account for just showing 2 months of Rent on a Rental ?
Was this your 1st Rental ? 2nd ?
Jassem A. ,
What please is PITIA ?