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Gd,Dfors is OK doing what he is suggesting. It's OK to collect rent on a second home you simply cannot use the income to qualify and you cannot have a rental agreement (if you do you do not have exclusive conrol over the property)
That's unless you are referring to not reporting the income on his tax returns...That's a problem for the IRS I don't see how the 4506T would tip Uncle Sam off that he is collecting rent and not reporting it!
Andrew,It actually was a second home at the time of purchase and was to refi as such. The home is in a popular ski town.
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