Using short term rental income to qualify for mortgage

[David Rutledge]

Hi everyone,

I am looking to purchase 2 or 3 investment properties to rent them out on airbnb. This is my short time plan while my long term plan may involved further purchases or the purchase of a primary residence (I only own long term rentals right now and do not own where I live)

My question is in 2 or 3 years time when I go to apply for a loan for my primary residence will I be able to use the income I get from STR to qualify as long as I have it documented on tax returns?

If I achieve my goal of purchasing 3 units by the end of next year and they do not count the short term income but still count my debt I will be unable to qualify for a mortgage.

I want to make sure I have all my ducks in a row before I go into full flight with the investments.

Thanks everyone.

David

[Julie McCoy]

@Joe Crupi I do not believe so, no.  However, talk to @Parker Borofsky about this - she's the expert on it, but my understanding is that if you're buying with a conventional investment loan, you can use projected rent as a means to help qualify.  The projected rent amount is determined by the appraiser, many of whom are well aware that short-term rental is the highest and best use of these cabins in the Gatlinburg area, and will take that into consideration.  They'll still project conservatively, but it's a big help.