Just moved back to USA - what comes first (STR or my own personal residence)

[Eric Sato]

Hi, I posted quite a bit a year back or so about my interesting situation. I lived in Japan for 20 years and was going to start building my USA based portfolio from Japan. I now actually live in Colorado full time and am looking to get started. 

My big question is... I don't even have my own personal residence yet (live with my parents, and proud of it!). My goal is to buy my family home (wife and 2 kids) in about a year, but don't want to wait a year to get started on Real Estate investing if I don't have to. 

I am most interested in STR as I love the idea of active management and playing the hospitality game. I used to be in marketing and my wife is an interior designer (freelance).

I am saving for my own personal residence as I have never owned before, but don't really know the different consequences I may face if I do an investment property first (concern related to my debt-to-income etc...) and how it may affect me trying to get a personal mortgage later. 

Any general advice would be appreciated!! 

[Tanner Pile]

@Eric Sato

Hey Eric, doing that high of a down payment should not be an issue for getting a conventional loan for DTI purposes. The one thing that may cause a problem is lenders not taking the short term rental income if it has not yet been stated on your taxes. Even if it is stated on taxes some may want 2 years worth to show it is established income. If it is in the same year they will not count any of it.

Definitely speak with lenders on this exact scenario for short term rentals. When they have a signed lease they are able to take 75% of that rent amount. 

What market are you considering for STRs? I'm down in Colorado Sprrings and have 2 properties 4 units total in STRs if you have any questions!