Am I a Landlord Yet? (For a Loan's Sake)

5 Replies

Hey BP,

I can't seem to find my answer regarding conventional loans for investment properties. We've owned a rental property for two years, producing monthly income that has been cash-flowing. This income property has always been managed by a PM company. My wife and I recently bought a house and are house hacking it and I'm doing the PM on my own now. 

I'm very interested in buying another property, but to go with a conventional mortgage I'll need to use the potential income to qualify for my next loan. 

Since we've been making rental income for 2+ years can we now be eligible to use potential income from a rental property to finance the next buy? Or do I actually have to be the property manager for 2 years (meaning do I have to wait for another 2 years?)  Any mortgage officers out there that can enlighten this newb.

Can anyone point me in the right direction for more information on this?

Tyson R.

    From my experience if it shows up on the tax returns, you have a lease, and they can run comps you're fine.... It'll be a percentage though...

    Thanks, @Matt K. Do you know where I might find out more about this?

    Tyson R.

      I just recently talked to my credit union about this. As long as it is on your taxes, they can count it as rental income. The loan officer mentioned that they will count about 75% as rental income so that they can account for vacancies and other expenses. No requirement to be your own PM.

      Originally posted by @Tyson R. :

      Thanks, @Matt K. Do you know where I might find out more about this?

       https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html

      @Deidre Carpenter Thanks. That's good to hear. This should accelerate my plans by a few years.

      @Matt K. This is exactly what I've been looking for. Thank you.

      Tyson R.

        Join the Largest Real Estate Investing Community

        Basic membership is free, forever.