Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

31
Posts
17
Votes
Tyson R.
  • Rental Property Investor
  • Salt Lake City, UT
17
Votes |
31
Posts

Am I a Landlord Yet? (For a Loan's Sake)

Tyson R.
  • Rental Property Investor
  • Salt Lake City, UT
Posted

Hey BP,

I can't seem to find my answer regarding conventional loans for investment properties. We've owned a rental property for two years, producing monthly income that has been cash-flowing. This income property has always been managed by a PM company. My wife and I recently bought a house and are house hacking it and I'm doing the PM on my own now. 

I'm very interested in buying another property, but to go with a conventional mortgage I'll need to use the potential income to qualify for my next loan. 

Since we've been making rental income for 2+ years can we now be eligible to use potential income from a rental property to finance the next buy? Or do I actually have to be the property manager for 2 years (meaning do I have to wait for another 2 years?)  Any mortgage officers out there that can enlighten this newb.

Can anyone point me in the right direction for more information on this?

  • Tyson R.
  • Most Popular Reply

    User Stats

    8
    Posts
    4
    Votes
    Deidre Carpenter
    • Laurel, MD
    4
    Votes |
    8
    Posts
    Deidre Carpenter
    • Laurel, MD
    Replied

    I just recently talked to my credit union about this. As long as it is on your taxes, they can count it as rental income. The loan officer mentioned that they will count about 75% as rental income so that they can account for vacancies and other expenses. No requirement to be your own PM.

    Loading replies...