Buying second househack/primary residence

[Raven Reinmuth]

I just bought my first primary residence househack back in May, and would like to get ready to buy another in a year. The question I have is, what kinds of things should I do differently to prepare to buy a second primary residence?

My credit is going to be a lot better and I will be able to prove a more income which will be great. Will I just need to have a lease signed proving that my previous house is producing income so that I will be able to support a second mortgage payment? Or would the lender also need to see rents coming in? I just don't think with my market (Denver) and income (around $60k/year) that I could support two mortgage payments and would need to prove that the first property is supporting itself.

How do others pull this off, and is there something I am not thinking of that I should consider while preparing to buy my second property as a primary residence?

[Ben Rhodin]

Hi @Raven Reinmuth! Awesome that you are already thinking about your second property! Never too early to get started, and you'll find it easier than you think once you get there. My first suggestion would be to chat with a lender who is familiar with house hacking (We have a fantastic one!) and they will be able to guide you and let you know exactly what will be needed, and how much you'll need your current place rented for before you close on the next one. 

You will just need a lease signed prior to your closing on the second one, no need to get it done way beforehand. The lenders take signed leases as "stable income" and thus don't need to verify them over the course of time. STR income or any other form of rental where you don't have a signed lease will act as 1099 income and thus would require 2-year history.

If you want a lender recommendation, or have any other questions, don't be afraid to reach out! Good luck with your new property!