Rental income... Do lenders accept it?

[Mason Jeffries]

So I have been finding out the hard way that rental income does not always count when qualifying for another mortgage.

I am house hacking our primary residence. Although I collect rental income from our long term tenants, the lenders consider it "Border Income" and will not count it.

If I buy a STR, will the income generated from that count as income when qualifying for another mortgage? If so, that's great. If not, then it seems that every time I buy a property I am acquiring the debt without the benefit of using the income to continue purchasing. It is my understanding that in order to count the income it has to be on 2 years of tax returns.

A different way to phrase this question is; How are these STR investors quitting their jobs so quickly due to the success of their rentals, and continue to purchase properties using the income generated from them?

[Christian Espana]

@Mason Jeffries I am not an expert, but from personal experience income from Long term rentals has always been accepted by my lender as long as there is a lease or can show revenue over 12 months. I recently purchased a STR property and that income will not count until I have two years of history.