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Updated about 4 years ago on . Most recent reply

User Stats

10
Posts
4
Votes
Pat Clancy
  • Boston, MA
4
Votes |
10
Posts

Debt to Income on Vacation Rental

Pat Clancy
  • Boston, MA
Posted

I recently sold a rental property that netted me a 6-figure profit. One of my considerations for my next investment was to purchase a vacation property that I would then list on airbnb and VRBO. I would make much more money doing so compared to renting it for the year and I already have a management company that could handle the property for me.

I told me mortgage broker about this and he said the only issue is debt-to-income. On my previous rental, I was cash-flowing quite nicely, so it decreased my debt to income if that's the right way to put it. In other words, I didn't have to worry about purchasing the next property. 

I'm currently in a position where I will need to sell my current primary in the next year or two and purchase a more expensive primary. Is my mortgage broker correct? And will purchasing an airbnb property hurt my ability to upgrade my primary home because of debt to income challenges?

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