Transitional Housing vs Rentals

[Joshua Hollandsworth]

When applying for an investment loan, lenders typically want to see 2-4 years of landlording experience BEFORE including your rental income, as income. I completely understand why they so this. HOWEVER, if you own a transitional housing property, (HUD-VASH, Sober Living, Foster home, Senior Living, etc.) Would these count as rentals, or as businesses? I am under contract for my first Sober Living Home, (which has been a pain in the rear thus far, due to permits and inspections.) I am just curious to hear your input. The way I see it, these types of homes generate 2-3 times more cash flow than a regular rental. I have more responsibilities, I have to hire staff, etc. So could this be considered a business rather than a rental?