I am currently purchasing a house and my parents are going to live with me. The mortgage will be ~$1,700 and they will be paying me $1,300 monthly. How can I leverage this situation to buy my first rental property? Reporting this $1,300 income on my taxes can help me increase my income. Also, I can show a portfolio lender that I am only paying $400 mortgage which can help me get a loan even if my DTI is off. Am I on the right path or thinking this correctly? Thank you so much in advance.
You have to report the income as income because Uncle Sam needs his cut. I'm not sure how depreciation would work on this situation though. As long as you qualify and can come up with a down payment there is nothing stopping you from getting that next property.