Bank not accepting AirBnb income, can’t get loan.

[Erik Nosich]

Hi all, I own several properties and this June closed on my first commercial property, a turn key short term rental 8 plex.

My wife and I have completed remodeling our single family home and found a house we really want.

The market in Anchorage is crazy hot right now and so we can sell our place for a significant profit. Due lacking a history of long term rental in the 8 plex, (we just signed several leases for the winter months) the bank won’t show as income, and so our debt to income is too high.

Do you guys have any tricks or tips you can recommend? I am surprised the bank does not allow short term profits (we made tens of thousands this crappy year alone) and have been running another place the same way for 4 years.

The only other option i can think of is ask the seller of the house we want to allow us to rent for 3-6 months and purchase after a rental history has been established.

[Allen S.]

@Erik Nosich I would also recommend that you form a leasing company to lease your 8-plex from you on a long term basis.  Then that company is in the business of subletting each room... this will also help categorize your AirBnB income as passive income and not an active trade or business.  With longer months-long winter leases you'll be fine, but if your average stay is less than 14 days (I think) then you'll be taxed more like a hotelier and not a real estate investor...