Investor/potential property manager

[Mark Gerlach]

Hey, all.
I recently bought my first property, a multi-family that I am house hacking. 2 units currently, with a third floor that used to be a unit and will be again. I’m living upstairs with a roommate while I Airbnb the downstairs. I have a mortgage on that property.

In about 6 months, a family member is going to sell me their house for an extremely reasonable price. It needs a lot of work, and I plan to convert it back from the single-family home it is now to the two family home that it is still listed as on the title. The family member is currently carrying some debt on the place. For these reasons I will have to qualify for a loan on the nee house, to pay off the debt that exists and to finance renovations. My current W-2 income will probably not be enough to qualify for the loan, but my income from my current property, which has existed for far less than the two years lenders will look for, gives me more than enough money to be able to handle the payments on such a loan, if I could qualify. 

Myquestion is this: can I create an incorporated property management company to funnel my current rental income through, then pay myself a W-2 salary from that company in order to raise my W-2 income so that I qualify for the mortgage on the new property? I see lots of posts about trying to do this as a way of circumventing taxes, but nothing about doing it as a way to increase W-2 income. I don’t care if my taxes are the same, or even slightly higher, if it means I’ll qualify for the loan that I need.

I appreciate any thoughts or insight. Thanks, everyone!