How rents income can help quality for next house jack

[Michael Orlando]

I have a duplex that I live in one unit. The mortgage is just under 1400 a month I rent one unit for 1400 and my friend lives with me for 500 a month. If I want to buy another duplex. How would they use the rent income to help me qualify?  
I have been thinking of one day moving back with my parents to rent both out. To speed the process up. I think I could get 1300 for the one I’m living in. Would I need to wait a period of time? Or could I use that as long as I have a lease and proof of security deposit.  I have a conventional loan that I put 20% down about 2 years ago.   Thanks for your time. 

[Devin Dang]

Hi @Michael Orlando I'm no lender but will try my best because I wondering the same for a while when I was going from 1 -> 2.

From my experience, first depends which type of loan (conv vs FHA) youre going into next. One major downside going into FHA is that they cant qualify any rents from your departing residence. Whereas if you go into conv house hack next, they can qualify 75% of LONG-TERM rents (no MTR, STR,ect) to help you qualify for the next house.

So they should at the minimum count $1050 towards qualifying income ($1400*75%) and if you have another long-term lease for your side that will start soon after closing, they should count 75% of that as well. Not 100% on your side so definitely get in contact with a lender!