Hello BP community! Newbie here :) I am looking into purchasing my first multi-unit (2 units) property where I will live in one and rent the other. I am trying to prepare for the future as much as possible and wondering if in 2-3 years if I decide to purchase my own SF home, how does financing/lending work? Any books/blogs/ recommendations and advice is welcome!
Honestly that would be a great strategy if you ant a SFR residence down the line. The lender will be able to use income from your multi-family as long as you have an active lease and are able to show a paper trail of rental income. Usually they will look at bank statements and previous years tax returns for this info.
In addition, if you can get a future dated lease and rental deposit most lenders will also apply that income from the unit that you are moving out of. The tricky part of this is the timeline for when you move out and get into escrow with the new SFR. Hopefully this helps!
Thank you for that information, Ryan! It definitely helps to gain some insight as to what I can expect in the future.