Investment strategy critique

[Joseph Villasenor]

Hello all, I was discussing a possible investment strategy and would be looking for some critiques or insight from anyone who has done this before.

My wife and I only have our primary residence as of the writing of this post. What we want to do is rent our house we have now and use the rental income (lender says only 75% is eligible to use of rental income). Refinance this home from an FHA to conventional and go house shopping again and use the FHA.

I know for house hacking when using an FHA you have to stay at your primary residence for 1 year. Wife and I are only a few months away from our 1 year mark at our current residence. So in essence the plan looks like this from a high level assuming we have met the 1 year mark.

Find qualified renter (screening, credit checks, DD etc. etc)

Have them sign rental agreement for a 12 month lease and move in date for them would be let’s say for example June.

Provide the signed lease to bank so they can use 75% of rental income towards our purchasing power. Plan to use an FHA loan for low entry point.

Locate another house get that house under contract

Move our stuff from our first house into our new house.

Get first house ready for tenant

Tenant is moved into our old.

Wife and I stay at new place for at least 1 year then repeat the process.

Again this is a very high level view for this strategy and a lot of these steps are easier said than done. I just want to know if this is feasible and if anyone who has gone on a similar journey to possibly provide some insight or caveats. Thanks!