Short Term Rental Income

[Jordan Allinger]

Hello all, I've been considering short term rentals for some time. I've been diving deep into the financial aspect of how banks view income from rental properties (need to be on previous years taxes for 100% usability or 75% of a lease can be used immediately) so that I can get multiple properties in a year without using private financing or hard money. My question lies in short term rentals. How exactly do banks use this money as income? I know the proper answer would be to talk to a lender but I'm just curious before I start talking with them if there's any simple answers you can all give me. Let me know, Thanks!

Jordan

[Joseph Bafia]

We ran into this as well. Everything we ran into was that conventional lenders were only counting STR income once it hit a Schedule E tax return. I was fortunate enough to be able to but a couple with my own DTI , but after that I had to go the route of one DSCR and one owner-financed deal. Now I have 6 in total and hope that every year with taxes being done, each one bought the year before frees up some DTI. In the meantime, I'm not letting it stop me and using non-conventional financing to fuel the in between purchases. Hope that helps!