Turning a primary residence into an airbnb.

[Ethan Clay Lesperance]

I recently moved to a home i was going to flip but decided to keep and make it my primary. I have a conventional 30 year loan on the old house(lived there for 2+ years) and private loan on the new one for now. Anyway, im planning to turn the old one into a 5 bed 2 bath airbnb. Is this ok to do while having a conventional loan? Is insurance going to be a problem? Do i need to inform the lender and my insurance of my intentions? 

[Michael Baum]

Hey @Ethan Clay Lesperance, technically the lender could call the loan due for violating a possible clause in the loan agreement.

I have been someone who has warned about this but so far, many folks have renting their former primary residences without issue with the lender. As long as the payments are made on time, they don't seem to care.

I echo @John Underwood that having the correct insurance is of top importance. As long as it meets all the standard kinds of coverage, the lender shouldn't care either way.

STR insurance usually FAR exceeds any kind of coverage that homeowners provides.

Proper, CBIZ and Foremost are STR insurance providers. A lot of other insurers are providing STR insurance these days so shop around.

I would get a quote from Proper as they are usually the most comprehensive but the most expensive. Use that as a base to check others for what their coverage offers.