Vacation rental newbie help

[Sam Moomey]

I’m currently looking at a house in my area which is a very big vacation area in the summer. I’ve got a house currently with around 150,000 in equity. The idea would be to sell my house ans use my equity for this new property. What I’d like to do is use it as a short term rental may-September and then live in it the rest of the winter months. The house is listed for 875,000 and could make 5000 a week being rented all summer long. The tricky part is I’d be buying it as a personal residence with the 3.5% down ideally to get a better return on investment along with freeing up my equity in my current house to furnish that house and invest in other real estate. Taxes are much better with a personal residence ans I can get a 30 year mortgage that way as well. The township is fine with me renting the house out on air bnb as long as I keep it homesteaded as my personal residence. So the goal would be to cash flow while having a very cool big house to live in 6-7 months out of the year basically for free because the summer rentals would cover the mortgage and then some. My biggest hitch is getting a mortgage. I haven’t talked to any lenders yet but I think I’m going to run into issues with my income not being high enough for it to work as a personal residence. Any advice on how to go about doing this to be approved for a loan. I’m not apprised to putting 20% down if I need to but I’d rather not do that if possible. Also I would need the air rental income to make a percentage of the payments. I couldn’t just do it on my income alone. Any advice is greatly appreciated. Thanks in advance!!!