House hack

[Ivan Mendoza]

Hello BP family, I live around the Denver metro area I am looking for duplex to house hack but I am finding they are very expensive and the numbers just don't work out . I'm using an FHA loan so I am basically stuck with the MLS listings. I have found houses that I have been remodeled and have a mother-in-law suites in the basements or a separate dwelling. I'm thinking about using that as a house hack as the numbers are working out on those properties. My question is if I rent out the separate unit or the basement do I have to have a tenant agreement filing paperwork as a landlord? Or do I just except cash with no paperwork? I'm barely getting ready to start out and I would like to get my rental history started because I know it takes two years for the bank to consider it as income. What if the basement has a non-conforming rooms can they still be rented out? Any advice would be very grateful and appreciated. Thank you

[Matthew Botos]

You definitely want a written lease for any rental. It'll protect you and prove your rental income history to the bank. There's a free lease download in this BP article.