Converting Primary Residence to Investment Property

[Scott Kennedy]

Here is the situation. Two lenders are telling me different things. I own a primary residence and one investment property. I have a 3 year history on my tax returns of managing investment properties. The LTV on neither property is under 70%.

I want to finance a new primary residence and convert my current residence to an investment property. If I am able to secure a signed 1 year lease and collect a deposit of the first month's rent, can the rental income be used as stable monthly income for qualifying purposes?

I've been looking at this document from Freddie Mac, http://www.freddiemac.com/learn/pdfs/uw/rental.pdf.

The third column says it can be used as qualifying income for "investment property not owned during the previous year". I did own the property during the previous year, but it was a primary residence, not an investment property. Can someone help me interpret this?

Thanks in advance.

Scott