[quote=paramount] . . . By the way, as I recently mentioned I was approved for a new mortgage – on top of the one I already have. The problem is, I want to move to San Elijo Hills. I don’t qualify for the property I would like to buy in SEH, primarily b/c I am not allowed to count what would be my rental income from my house in Temecula.
There has to be a way to get this done, I need to qualify for about 100k more. Any ideas?[/quote]
Move to SD County and rent for a year. As soon as your current home is vacant and ready, enter into a least a one-year lease ASAP and begin collecting rent on it. Make sure you copy the rent checks you receive before depositing them and keep a copy of your lease. And be sure to copy all your online processed deposit slips in the exact same amount as the rent checks, shortly after receiving them. Do NOT deposit any other checks in the same deposit as the rent check, so the deposit slip will match the rent amount exactly.
After your rental home is “seasoned” for about a year, a lender should be able to consider 75% of that income as rental income against your expenses. Hopefully it will be a positive cash flow.
You don’t currently have any rental history and are still living there yourself, so you aren’t able to show an income from it. You also don’t have a rental agreement or lease for the property in favor of a third party to show a lender. That’s your current dilemma, IMHO, and the only way you can fix it is by vacating it and turning it into a rental.
There is an “abyss” between a “wishful” rental property and a “seasoned, proven” rental property.
