Renting my Owner occupied home while i live in the In-Law
I just purchased my first single family 3 bedroom house that came with a non-permitted detached in-law unit in the back, typical for Oakland Ca. I am planning on living in the in-law unit since I got an owner occupied FHA loan. I am planning on living in this Oakland property for a year, then purchasing my second property as soon as I can. I am new to this so I have a few questions.
1. Are the repairs to the main house such as paint, carpet, HW floors deductible since I’m renting it?
2. Is the rental considered income…?
3. I do have home owners insurance, would I need to get an additional renters insurance…?
4. Is there anything else, good or bad that I need to be aware of in doing this? My loan officer said as long as I am living on the property which I am, I am not committing fraud. All utilities are in my name, just in case i need proof that i live on the property.
Thanks,
Ernie