How to finance my next live and flip/house hack

4 Replies

I am just over a year into my first house hack/live and flip deal. My brother and I owner occupy the property and rented out 3 rooms in the home for a total of $1,250/month utilities included. Almost cashflowing out the mortgage of $1,371. We would like to move out of our existing property into a new owner occipied house hack. Therefore renting out our two rooms and cashflowing out handsomely on deal one. Do we have to show months of rent rolls? How can we do this? Any information helps. Thanks!

When I bought my current house I was told I couldn't count any income from my rental property until it had been consistent for at least 2 years. I had to qualify for this house as a second home on my existing income.

@Jacob Casarez - Are you claiming the rental income on your taxes? Most banks will want to see two years of rental history before they will count the rental income. Without proof on your taxes most banks will simply county your property as a liability. 

Yes, the rental income is claimed. Is there a quicker way or alternative route??

My loan officer told me that just recently the rules were changed for the better regard to rental income for investors. As others have posted, previously, for the rental income to be counted you would have to have two years of rental income experience for the property. Another option was to have 30%+ equity in the property. Both of those requirements have been lifted and now a lease and proven deposit will do or the bank can do a rental market study on the property and will then deem what the market value rent would be and will count that. My loan officer is with Home Bridge. I haven't checked this with another loan officer or bank and I have not moved forward using this method yet.

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