Moving On From House Hack to Next Property

[Matthew Olszak]

I'm rolling into year 2 of my house hack of a 2 unit and ready to move into something larger. My rent on the second unit is stabilized and just a hair above market rate, but justifiable. My schedule E for the past 2 years shows a loss, but all of that was due to depreciation, taxes, insurance, and one-time repairs.

My question is how my potential income from my unit will be treated when qualifying for a conforming loan? Its worth more than the 2nd unit I rent, but even @ the same rent as the second, the potential income would help me substantially if I can use it despite me living here now. Also - as far as I understand, taking a loss on my sch E will be adjusted out for those reasons I listed above, is this correct?