The Accidental Landlord House Hack Financing 101 with Christian Bachelder, Owner of The One Brokerage
Jun 15, 2023
Christian Bachelder, co-owner of The One Brokerage and expert in financing for homebuyers, shares his insights on effective house hacking. He breaks down the process of qualifying for mortgages and transitioning between properties. From the rent-by-the-room model to mastering lease management, Chris offers actionable strategies to help new investors tackle financial challenges. He emphasizes the importance of co-borrowers, strong credit, and understanding evolving market dynamics for building wealth through real estate.
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House Hack Financing Challenges
- House hacking financing is hard because lenders don't credit rent from roommates on a primary residence.
- Multifamily units or ADUs offer exceptions where rental income can help qualification.
Report Rental Income To Qualify
- Report rental income on tax returns to use it for qualifying on future loans.
- After moving out, rental income from the whole property counts like a typical investment property.
Depreciation Does Not Lower Loan Qualifying
- Depreciation is a paper loss that reduces taxable income but does not affect lender qualification.
- Lenders often add back depreciation to taxable income to evaluate true qualifying income.