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Updated over 1 year ago on . Most recent reply

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7
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Brandon Warren
  • Savannah, GA
0
Votes |
7
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Lease STR to my LLC to improve DTI

Brandon Warren
  • Savannah, GA
Posted

I purchased a primary residence just over a year ago and lived in it for the 1 year I was required. I've now turned it into a STR and am in need of another primary residence. My problem is that the first house is still on my DTI and I can't claim the STR income right away. If I was to do a standard long term lease then I would be able to use the lease payment to help offset my DTI and get approved for the next home. I'm wondering if I was to lease my home to the STR business (LLC), could I use that lease agreement to offset my DTI? Is it going to be a red flag for the bank when they see my signature on the lease agreement on both lines? My wife will not be on the loan for the next home as she has no income and is 50% owner of the LLC and could sign the lease for the business. Maybe that'll be less of an issue/red flag? Is this illegal? Is there another strategy I don't know of?

Any assistance is appreciated! Thanks!

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