Can I Do This on Owner-Occupied MFR Refi?

[Aaron Almquist]

My scenario for my question is: I purchase a duplex to BRRRR it, have one side occupied/rented and I occupy the other while rehabbing that unit and the exterior. It comes time to cash-out refi and the lender wants to see rent roll numbers.

Am I able to use comps for the unit I've occupied or if it's identical to the other side, use that number? Or can I not occupy it, must rent it out in actuality for a period, and represent the numbers that way? Have also read that some lenders will refi right after PM is hired and leases signed, no actual elapsed period of actual renting. 

I just want to make sure I am representing the numbers accurately to the lender and also that I shouldn't be doing something complex like paying myself (?) the rent but as a different entity, hahh. I don't know.. I've never done this before! Guess there are no stupid questions.... I hope. And I have to know this stuff before I even begin to do anything in reality, so thanks for your patience!

[Krystyna Fennelly]

I would suggest having an open conversation with your loan officer/lender. I've been a Realtor 16 years and I can tell you, if you're honest upfront, it helps tremendously to find the best finance option for you.  You'll get bit in the butt when you omit the truth.

Do you intend on continuing to occupy one unit? If not, rent it, then refi. If so, can you qualify for the refi with only the other unit's rental income?  Again if you tell the LO the situation, he/she should be able to work the numbers upfront and give you a good idea of whether or not it'll be feasible.