What would you do in this situation?

[Wilder Fuentes]

Hello BP Community,

In September 2022, I have acquired a property in North Carolina, which I plan to make available as a medium term rental. This will be my first MTR. Unfortunately, it look like I need to wait 1 year cycle prior to launching this business per closing documents with Navy Federal - this is a secondary home loan.  Rehab and furniture purchase is underway; however, waiting 1 year is a long time, and I was wondering what else should I be doing to prepare for the day I will advertise my MTR in Airb&b. What would you do in this situation?

I look forward to receiving guidance from this community.

Thank you,

Aurelie Bell

[Michael Baum]

So @Wilder Fuentes, Navy Federal doesn't sell it's mortgages from what I have read so until you refi you will be stuck with the LTR prohibition.

So I have to be honest. You aren't walking a fine line here. You bought a place that you won't be able to rent. You are breaking the law if you wait the year and try to STR the property. You committed mortgage fraud if you try and LTR the property.

I am going to bet that Navy Federal will be on the look out for these sorts of things and could call the mortgage due.

The worst case for your plan was to break the law regarding STRs after a year? Unless you can find another illegal way to rent the property?

I guess I am not getting the business strategy here.