Hey everyone! Looking for advice from those who have done something similar.

New to Real Estate · Member since 2026 · 2 posts · 0 votes

We purchased our first home in 2020 and are now planning to keep it as a rental while purchasing a duplex to owner-occupy and house hack for at least a year.

I’m trying to figure out the best order of operations. How did you handle the transition, navigate city rental requirements, and avoid carrying two mortgages for too long?

What would you recommend doing first, and is there anything you wish you knew before getting started?

Excited to finally make this happen! TIA! 😊

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 688 votes
6h
Amber, a few things on the financing side that usually decide how this plays out:
Carrying two mortgages for a while is hard to avoid unless you sell or refi the 2020 house, so the real question is whether you qualify with both. Most lenders will let you use rent from the home you're moving out of, but they want a signed lease and proof of the deposit or first month's rent, and conventional loans generally only credit about 75% of that rent against the payment. FHA is stricter: unless you have roughly 25% equity in the home you're leaving (supported by an appraisal) or you're relocating a long distance, the full old payment is often counted against you with no rent offset.
Also check what loan you have on the 2020 house now. If it's FHA, you generally can't hold two FHA loans at once outside a few exceptions, so the duplex may need to be conventional (many conventional programs now allow as little as 5% down on an owner-occupied 2-unit) or the current house would need to be refinanced out of FHA first.
On the duplex itself, lenders can usually count about 75% of the market rent from the other unit toward qualifying, which helps a lot. You'll be signing that you intend to move in within about 60 days and live there at least a year.
Sequencing that tends to work: get the current house rent-ready with a tenant and signed lease before you close on the duplex, and get pre-approved by a lender who looks at both properties together up front so there are no surprises on DTI or reserves (expect them to want a few months of payments in reserves for the rental too).
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Brian AsaroPro Member
Real Estate Agent · San Diego, CA · Member since 2022 · 22 posts · 14 votes
5h
We will be in the same situation in a couple of years and have the same question. It seems to me you'll have to pull out money from your current property. The amount will be based off what the rent is in your area. Then, you'll have to find out how much you'll be approved for on the next property using the potential rent from the new property as additional income. The problem is the time between the refi and finding the next property, then getting a tenant in the unit you just left. I'll be watching this post for ideas
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Ryan BakerBusiness Member
Lender · Strongsville / Cleveland, OH · Member since 2026 · 152 posts · 38 votes
5h
Before making an offer, get a lender to underwrite both homes together using your current payment, a realistic lease for the first home, and projected rent from the duplex; rental income may not fully offset each mortgage for qualifying. If you are considering FHA for the duplex, confirm whether the first loan and your move satisfy its occupancy rules, and compare an owner-occupied conventional option too. I would also set aside reserves for a vacancy or delayed lease-up so you are not depending on immediate rental income. Happy to walk through the numbers with you, give me a call (my number is in my signature below).
– Ryan
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Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 700 posts · 292 votes
4h
Congrats, @Amber Warren exciting move! Here's what I'd do.
Get the duplex loan first. Get pre-approved while your current home is still your primary residence, so your income and debts look clean. Ask your lender how they'll count rent from your current home. Many want a signed lease and only count part of the rent, so line up a tenant before closing. Owner-occupant loans usually require living there about a year, which fits your plan.
Check city rules early. Look up rental registration, licensing or inspection requirements before listing. Some cities won't let you collect rent without them. Also switch to a landlord insurance policy on the old house.
Avoid double mortgages. Pick your move-out date, get the house rent-ready ahead of time, and aim to have a tenant move in right as you leave. Keep a few months of reserves for both properties.
Taxes: Once it's a rental, you report the rent but can deduct interest, property taxes, insurance, repairs and depreciation. Depreciation starts at conversion, so note the home's value on the day it becomes a rental. In the duplex, you can generally deduct only the rented unit's share, so track expenses separately from day one. If you sell the old house later, you may still qualify for the home sale exclusion if you lived there 2 of the last 5 years, but depreciation is typically taxed. Talk to a CPA before you decide to hold or sell.
What I wish I knew: budget more for repairs than you think, and screen tenants carefully. Good luck!
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