I'm looking to buy a 2nd property, 2-4 units, with a FHA loan around next August. The place I have now is a duplex, I live in one unit and rent out the other unit.
Does anyone know how they factor in the rental income from the 1st property when buying a 2nd? I know the 75% rule - but will they count the rental income as income at all, or only on the new property that I purchase? Or does a certain amount of time need to pass? Also, the unit that I currently live in - will ideally be rented out, since it would be a new lease, would they also count that rental income, or would a certain amount of time need to pass for it to be vetted?
I also plan to refinance my current place into a convention Mortgage after the new year - will doing a refi on the current place so soon to when I want to buy a 2nd place create any sort of barrier to buying? Is there a certain amount of time I need to have between the 2 transactions?
Thanks in advance to any insights and advice you have - I want to be prepared as possible when I talk to my loan officer about buying. And don't want to mess up the timeline, if there needs to be a certain amount of time between the refi and new purchase.
