2 Years of House Hacking Before I Count as a Landlord?

Question

Hi there,

I've read, mostly through BiggerPockets posts, that if I'm planning to purchase a multifamily with a loan that requires owner occupancy (house hacking), then after two years the income from the property will count as income in the minds of lenders. Is this true? If so, where does this info come from ... Is it federal law?

I want to make sure that I understand if and when a house hacked property will count as an actual investment property by banks so that when I want to purchase a second property, the first property counts for me and not against me.

Thank you,

Valerie

Tyler Ansell · Answer

It's up to the lender, my guy lets me use my rent generated from day 1 towards my income.

Valerie King · Answer

Thanks for the advice guys! I honestly had no idea where the timing rule came from. Good to know it's lender based :)

Dillon Loomis · Answer

@Valerie King you'll want to check with your local lending institutions. All of them will have different standards, timeframes for when they "count" rental income. There are numerous factors that go into it, and I think the more you ask around the more you'll find it's just like shopping for anything else. Some lenders that are more investor friendly may be more willing/able to count rental income towards your ability to go for another loan. The more prepared/professional you are, I believe the more likely the lenders will be to work with you. Printing out the PDF's from the BP calculators would be a good place to start as something to take with you.

But please keep me posted! I'd be curious as to your findings in your area, as I'm in the midst of doing something very similar. Good luck girl!

Marlon Fong · Answer

Hey @Valerie King welcome! It's great to have you. Check out the webinar (https://www.biggerpockets.com/webinar) if you haven't yet. Highly recommended!