House hacking duplex

1 Reply

My wife and I have one current rental, cash flowing with equity. We have tossed around the idea of moving, to temporarily (1-2 years) rent out our primary residence. The idea would be can we buy a duplex and house hack for a year or two, while having someone rent our home also so that we can save save save during that time for another purchase.

My question is, how can we qualify for another loan for the potential duplex, with the intention of renting our primary? We wouldn't have any rental history yet on the primary to offset that monthly debt obligation. Would a lender be satisfied with a signed lease agreement?

The trick will be to find a potential property that can accommodate us for the next year or two. We have to small kids, age 2 and 6. We are thinking long term, and years go by quickly, so we think ultimately it will be worth it. We believe we could rent our primary residence for $2500- $3000 per month, which would cover all our expenses here.

Any thoughts?

Hey @Ben Dubinski

Love this idea you have. Moving and renting out your primary while also house hacking will be a fantastic way to generate some extra passive income while allowing for greater savings! 

Your best bet here is to speak with a few lenders/brokers. I can tell you that qualification will likely depend on a couple things. If your current primary is on an FHA loan, you will need to refinance that to get one on the duplex house hack. In order to have your primary (new rental) qualify as income to offset debt, you will likely need to have a tenant in place with proof of payment from them. I do not know the specifics of this so you will definitely want to speak with a lender, but I do know they generally want proof of income.

I hope this helps a bit and please feel free to message me anytime if you have other questions or just want to chat!