Podcast Summary: Earn Your Leisure – How to Use Roommate & Rental Income to Qualify for a Mortgage

Episode Date: November 1, 2025
Hosts: Rashad Bilal, Troy Millings
Theme: Leveraging roommate/border and rental income (including creative house hacking) to qualify for a mortgage, with a focus on real-life scenarios and practical documentation strategies.

Episode Overview

In this episode of Earn Your Leisure, Rashad Bilal and Troy Millings break down lesser-known real estate strategies for homebuyers, specifically how to use income from roommates and rental units to more easily qualify for a mortgage. They discuss Fannie Mae guidelines, crucial documentation steps, and various “house hacking” approaches that can be applied whether you’re single, in a relationship, or just graduated from college. The episode is loaded with practical advice, insightful examples, and energetic banter, aiming to empower listeners with actionable wealth-building tools rooted in real estate.

Key Discussion Points & Insights

House Hacking – Beyond the Basics

[02:03–02:33]

• Hosts discuss creative income sources:
  • Renting out your backyard or pool via newly popular apps to cover mortgage payments.
  • “You can run out your backyard. You can run out your pool…one of my mentees every year she rents out her backyard, her pool here in New York, and it pays her mortgage for the year.” (Real Estate Expert / Host, 02:09)

Using Roommate or “Border” Income to Qualify for a Mortgage

[02:33–04:35]

• Fannie Mae HomeReady program allows border (roommate) income:
  • Requires documented rental payments for at least 9 out of the last 12 months.
  • Must provide lease agreement and proof of receipt (e.g., Venmo/PayPal/Cash App transfers with memos noting “January rent,” “February rent,” etc.).
  • “If you do that nine months out of the past 12, then when you go qualify for your mortgage, you can use that rental income as part of your income to help you qualify for your mortgage.” (Real Estate Expert / Host, 04:19)

Real-World Scenarios – Relationships, Roommates, and Documentation

[04:47–08:00]

• The “boyfriend/girlfriend” example:
  • Often only one person is on the lease; the other contributes informally.
  • If the non-leaseholder is added to the lease, and payments are documented, their rent can be considered qualifying income for a mortgage.
  • “You’re legally single. This is your roommate. So if you do it that way, now that rental income can now be used to help qualify.” (Real Estate Expert / Host, 07:11)
  • Adds flexibility: If the couple splits after buying, the non-mortgage-holder can still buy property using their own credit, since their name isn’t tied up.

Applicability for College Graduates and Non-Traditional Applicants

[12:51–15:23]

• Roommate scenario extends to college grads:
  • “It could just be your college roommates…most of them have what, roommates for the majority.” (Real Estate Expert / Host, 12:53)
• College counts as work history:
  • “Did you know you can use your college education as your work history? You don’t need a two-year job history, you can use your college history as work history.” (13:09)
  • Present your offer letter and first pay stub from a new job to jump straight into home buying after graduation.
  • If college roommates are on the same lease and follow the payment/documentation strategy, the primary leaseholder can use their payments as qualifying income.

Stacking the Hacks: Multiple Roommates and Accessory Dwelling Units (ADUs)

[15:13–17:24]

• “Border” income can be multiplied:
  • Applies if you have multiple roommates, provided all are on the lease and payments are documented.
  • Everyone must move into the new home as roommates to continue using their income to qualify.
• ADUs as an income qualifier:
  • Rental income from an accessory dwelling unit can help you qualify, even if you don’t personally have a roommate.
  • “Now we’re going to use long-term rental income to help you qualify, but that does not mean you have to have a long-term tenant. You can now turn that ADU into an Airbnb play, VRBO…there’s so many different things.” (Real Estate Expert / Host, 16:37)
  • Strategic location: Target markets near airports, hospitals, or large construction projects for lucrative “midterm” rentals (3–9 month renters, e.g., travel nurses, consultants, or AI data center builders).

Notable Quotes & Memorable Moments

| Timestamp | Quote & Context | |-----------|----------------| | 02:09 | “You can run out your backyard. You can run out your pool…one of my mentees every year she rents out her backyard, her pool here in New York, and it pays her mortgage for the year.” (Host, on unconventional house hacking) | | 04:19 | “If you do that nine months out of the past 12, then when you go qualify for your mortgage, you can use that rental income as part of your income to help you qualify for your mortgage.” (Host, on border/roommate income) | | 07:11 | “It’s a clean way of qualifying with using this roommate income because your roommates right at, at the end of the day, you’re not legally married. You know, you’re technically single in the eyes of the, of the law…This is your roommate. So if you do it that way now that rental income can now be used to help qualify for a mortgage.” | | 12:53 | “It could just be your college roommates...” (Host, on who can be considered for border income) | | 13:09 | “Did you know you can use your college education as your work history? You don’t need a two-year job history, you can use your college history as work history.” | | 14:18 | “Now if you freak it, you got that college history…during college you have a single family home that you was renting out…have them pay you…now you can use that border [income].” (On combining strategies) | 16:37 | “You can now turn that ADU into an Airbnb play…target midterm renters, like traveling nurses, like flight attendants, like depending on what city you live.” | | 17:10 | “Think about all the AI data centers that’s being invested and built…these people…might only be out there to do a job that’s going to take six months. So what do they need? A midterm rental. They don’t want to sign a year lease…So you got to really take the current events and everything that’s happening…” |

Important Segments & Timestamps

• Creative house hacking & non-traditional income: 02:03–02:33
• Fannie Mae border income explained: 02:33–04:35
• Relationship/roommate documentation details: 04:47–08:00
• Why splitting the mortgage is good for scaling (post-breakup): 11:51–12:41
• Roommate strategy for recent college grads: 12:51–15:23
• Multiple roommates & ADU income stacking: 15:13–17:24

Tone & Style

The episode mixes energetic financial insights with transparent, accessible explanations. The hosts maintain an upbeat, conversational style—often injecting humor and practical tips—making dense real estate finance topics approachable for beginners and seasoned listeners alike.

Takeaways

• Roommate/border income is a powerful, but underutilized, lever for qualifying for a mortgage—provided you follow strict documentation steps.
• These strategies work for singles, couples, and groups—there’s flexibility and scalability, with potential to accelerate your homeownership timeline.
• College leavers can qualify for mortgages using their schooling as work history, combined with new job offers—no need to wait two years.
• ADU and midterm rentals, when targeted to the right markets and properly documented, can boost your mortgage qualifying income and diversify property revenue streams.
• Every hack discussed relies on diligent record-keeping, cooperation among roommates, and careful attention to lending policies.

For Listeners

If you want to fast-track homeownership, especially in expensive markets, don’t overlook the potential of leveraging your roommate/rental situation. Start by getting every agreement in writing, collecting payments in verifiable ways, and maintaining clear documentation—small habits now can add tens of thousands to your buying power later.

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