If I purchased a 3 flat and I'm living in one of the units of a 3 flat, what's stopping me from moving out in 6 months, renting that unit, and then applying for a mortgage with another lender?
I understand the new lender would want to see rental income on that unit I used to live in, so say I rent it out for a year, go rent somewhere myself for a year, then apply for the mortgage, does that work?
Ask you lender! If you can find a lender that is investor friendly, they can help you "house hack".
I think a lot of banks like to see you occupy the property for at least a year... but if you can find a loophole, more power to you!
Only thing stopping you is if somehow your current lender finds out and they had a baseline of 1 year of occupancy or something similar. What the repercussions are is dependent on the contract, but there is a good likelihood of a due on sale being the case. Just talk to some other lenders about what they need to have as proof of rental income and their requirements.
Thanks for the replies and the link! It makes much more sense now.