Scaling house hacking

[Andrew Ager]

So I recently bought my first house hack: townhouse rent by room .

My goal is to buy a new one every year with a FHA loan refinancing into a conventional then reusing the FHA loan for the new property taking my roommates with me to each property while turning the previous one into a full time rental .

I can save the down payment each year easily.

I guess my question is what kind of criteria is demanded by mortgage companies to allow me to do this ? And is there anything else I should know before trying to scale up in this way ?

[Rand Knutson]

Hi Andrew, if you do a 5% down conventional loan, you don't need to refinance your FHA loan in order to remove the PMI. So I'd recommend doing a 5% down if you have a little more capital for downpayment!

I would be most mindful of DTI when scaling this way, I'd say it is the limiting factor in qualifying for each next house.

Good luck!