Lending Question for Consecutive House Hacking

[Benjamin Sulka]

Wanted to get some perspective from lenders. 

My goal is to house hack consecutive years to accumulate units with relatively low money into the deal. I've heard from some lenders/investors that you need to "upgrade" your living circumstances year over year in order to qualify for another loan. I've also heard from some investors that this isn't the case. 

For example, if you started with a MFH and had 2/1 in your unit, you would need to upgrade to a nicer area, larger space, etc. etc. 

I'd be grateful to hear lender and investors experience with this. 

-Ben, aspiring serial house hacker

[Justin Brown]

So the will be looking that the occupancy makes sense … I’ve been in lending 22 years and run a mtg co, was an underwriter for a while

basically you won’t be able to do a lateral move because then it will be obvious your building a portfolio and it’s an investment, so yea the lenders telling you it needs to be a move up are correct for the most part 

but closer to work is considered a motivating factor and would work, so ideally I’d buy the first one on the outskirts of max distance you’ll be willing to commute , then find one closer to work with small sf .. it’ll make sense your moving closer to work

if from there you buy units that are larger in sf, and still similar or closer distance to work, that’s considered a move up going from a 4 unit to 2 unit , from units to a Sfr, all of that would be considered a move up 

going l from attached to detached, relocating from work, it just has to make clear sense for your motivation to buy and occupy the new p property other than simply adding to your portfolio