Renting out primary and buying new house

Buying & Selling Real Estate
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Renting out primary and buying new house

Jonathan Wiesniak
Member since 2024 · 4 posts · 2 votes

I own a house in South Florida worth about $650k.  We are planning to rent it out and move to Massachusetts. I Have about $320k in equity.  mortgage all in is $2600 / month and a conservative rental estimate is $3700-$3900.

The tricky thing is my wife will move first, and I will follow her about 3 months later.  Her income will not count towards the new mortgage as she just finished up lengthy stay at home mom duties.  Im going to need the rental income to show for the mortgage as I think we will come up short in what loan amount we are looking for.    

So my question is, will the rental income count even before I have a lease agreement in place ?  And is it $3700 - 3900 x 12 months all multipled by 75% for the income calculation ?  


The point of this is, I wanted to move from house in S. Fl to house in Mass.  Not move to an apartment  in Mass. for a few months while looking for houses.

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  • Daniel McDonald
    Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
    2y

    Happy to connect you with some lenders I recommend in MA. I own two duplexes just north of Boston and always looking to connect with other investors in the area. 

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  • Derreck WellsPro Member
    Specialist · Pelham, NH · Member since 2013 · 544 posts · 269 votes
    2y

    As far as your specific question goes, I don't think the banks will count the rental income on the house in FL towards your income requirements for the new mortgage because you are still living in it, but that's a question you'll need to ask your lender to be sure on.

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  • Milton ChamberlainPro Member
    Real Estate Agent · Kansas City, MO · Member since 2019 · 235 posts · 107 votes
    2y

    My understanding was it needed to be 1 year of steady income to be considered, BUT not a lender, so obvs confirm with them. I'm sure there is some loan product that can circumvent this, like a DSCR. Having a HELOC on your FL property is always a good thing to have in your back pocket, even if you have no plans on using it

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  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    Rental income will start when your lease agreement starts so if today you have a lease signing for June 1, the lender will start counting that income starting that date. You'll also likely need to deposit any first, last, security deposit into your bank so that they see the proof of transaction. 

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  • Tre DeBragaPro Member
    Real Estate Agent · Worcester, MA · Member since 2022 · 107 posts · 48 votes
    2y

    Like others said I am not a lender BUT I have seen people get creative with situations like this with DSCR loans and other types of loans. I have great connections in the MA area with lenders if you would like to connect and get you connected. You might also be able to get creative with getting a lease under contract now for your current home which will start on the date you leave. I am also a realtor in MA if you need any further help.

    Good Luck 

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  • Jacopo Iasiello
    Investor · Miami Beach, FL · Member since 2017 · 362 posts · 109 votes
    2y

    It's important to discuss your specific situation and requirements with a mortgage lender or loan officer. They can provide you with detailed information on their rental income calculation methods and help you understand how rental income may impact your ability to qualify for a mortgage.

    Additionally, working with a knowledgeable real estate agent and mortgage broker who have experience with rental properties and relocation situations can help you navigate the process more effectively and ensure you find the best solution for your needs.

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