Buying a Second Home as a Vacation Rental.

[Olecia Williams]

Hey BP Community, 

I'm looking into buying a second home and using it as a vacation rental ( Airbnb/ STR). I know that with a conventional loan, I could put as little as 10% down if it's classified as a second home rather than an investment property. However, I've heard mixed things about the rules, risks, and potential lender restrictions.

Also, if anyone knows of a great CPA in the Wellington/West Palm Beach, Fl area, that would be super helpful! Having a CPA who really understands REI and STRs is key for tax strategy and compliance.

Would love to hear from anyone who has gone this route. Did it work out as expected? 

Any advice would be greatly appreciated! 

[Basit Siddiqi]

Be mindful that there are rules that the lenders want you to check off.
Furthermore, there are other rules on the tax side where you want to normally be under to get the most tax benefits.

The magic number in both instances is '14 days'
Lenders want you to stay atleast 14 days to meet the secondary home requirement.

The tax accountant normally wants you to stay less than 14 days or 10% of the days it was used as a rental to treat it as a rental and not as a personal residence.

Best of luck!