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Updated over 1 year ago on . Most recent reply

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18
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Justin Reagan
  • Investor
  • Pittsburgh, PA
13
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18
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2nd House Hack Advice

Justin Reagan
  • Investor
  • Pittsburgh, PA
Posted

Hi everyone,

I recently purchased a duplex that I am house hacking. I am trying to look ahead and see what my options are for potentially purchasing another in the future and doing the same thing. My concern is that with a mortgage on my first property, will my DTI be too high to qualify for a mortgage on the second? I currently get 775 from the apartment I am not living in. When it is fully rented, the rents will be approximately 1800. My PITI on the property are 1250. Not sure how this debt and income will be factored in when applying for my second. Any insight is greatly appreciated, thanks!

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Replied

Hey @Justin Reagan! I love house hacking. After the year has passed and you are ready to move on - and your rents are at the $1,800 amount threshold you say - you should be able to pass the property 'test' of which I call it - where the lender will take 75% of the rent you own and put that against your PITI. In this case you would be at $1350 ($1800 times .75) of 'rental income' they would look at to cover against your PITI. This in the eyes of a lender would be seen as positive because you are covering your costs plus $100. Someone can correct me if I am wrong. Also, don't know if you have other income sources, but some general advice!

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