How do you prove potential future rental income to a lender? Or can you not factor that additional income in? Seeking an FHA loan. First time home buyer looking to house hack a triplex or quadplex. Living in one unit renting the others. Thanks in advance for any helpful advice!
@David Morse the appraisal more or less takes care of proving the income of the building. The lender can then use 75% of the current rents or 75% of the pro forma rents to help you qualify from the income side. This is just one of the many reasons that I love the house hacking strategy! It really makes buying a small multifamily property one of the more affordable things you can do to get started.
@David Morse - Confirmed with the comments above. The appraiser will take 75% of market rents. Sometimes, if you can get a signed lease before closing, they can use that too. However, that differs by lender.