I've been reading the forums, books, listening to the podcasts, and learning so much! I'm currently closing on my first house and I think I have most of the next steps figured out. Because the market is so hot in my area and properties are selling for so much, I couldn't find anything that will come close to cash flowing. On the other hand, by renting out two bedrooms I will be paying only slightly more than I currently pay for rent in my apartment. I'm a remodeler by trade, so I've already planned to remodel the kitchen, turn the family room into another bedroom, move the laundry to the garage and use the extra space to turn the powder room into a 3/4 bath with a shower so I'll have 2.75 baths and 4 bedrooms total. Once I can rent out a third bedroom, my cost of living will be significantly reduced.

Now, my confusion is coming into play with how I will eventually qualify for my next house hack? I am currently making about 70k a year at my main job, working a second job (which wasn't able to qualify toward my income because I haven't been doing it a full year), and my debt-to-income ratio is maxed out on this home loan. I was debt-free before this mortgage, and now my DTI ratio is at 49.7% to buy this $450k house with 10% down. I don't see how there is any opportunity to acquire another property in a year's time? I see everyone talk about this one year turnover time, but it seems like it's based on the assumption that everyone has a high-earning W2, right?

I am aware that if I continue my second job, I will have that income added to my overall income for consideration in the next loan, but I would basically need to make the same amount of money in my second job as I do in my main W2 to qualify for anything else in my area. I did read in The House Hacking Strategy book that you have to have 2 years of rental income for it to qualify as part of your income as well. So, from what I am gathering, the only way that I will be able to take on the debt of another property would be to continue my second job, and wait 2 years until I can claim all my rental income towards my overall income. Does that sound right? If I have to wait 2 years, then that's what I'll do, but I would really only like to do things sooner! Am I missing something? Hoping that you guys could point me in the right direction. I preordered Pace's book about creative financing, so I understand that that could be an option as well. All input is appreciated. Thank you for your ideas! :)

Seattle, Washington

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