All Forum Posts by: Dave Price

@Joseph Bafia  Very true, thanks for the info!

@Gerald Pitts

Yes, this is what I was basically asking. So the key is to start creating income on the first and second property as fast as possible to get that income on my yearly taxes. This will help in getting the lenders to consider that income to better my DTI.

Thanks!

@Account Closed

Very true, that first one is a big one because if you're taking losses or not cash flowing as much as you expected than you're dead in the water for the second.

As long as the first one cash flows what i'm expecting then I will purchase the second one under my wife's name.  That will give me some time to get enough time that lenders are asking to show income on the first to then start thinking about financing the 3rd under my name.

@Ken Boone

Yep totally understand what you're saying.

I'm just putting some financial scenarios together incase I do like it and what I need to do to be able to position myself to scale it up.

Thanks for responding with some personal experience and some actual insight into what I was asking about!

Ok, so best case scenario if I bought a turn key STR in July 2022 and get STR income from September through December reflected on my 2022 taxes i could potentially find a lender to consider that income? If this works then I'm looking at about a year after purchasing my first one.

Current DTI before purchasing first STR is 25% but after the first my DTI will be about 42% if the STR income will not be considered.

I haven't bought anything yet.  I plan to buy my first next year and doing the planning now.  

I plan to buy my first STR (Cabin) in July of 2022 in the Northern AZ. I will be purchasing this home under a Conventional Second Home Loan for 10% down.

I was wondering how soon after purchasing the first STR can I count the income from that STR to better my DTI in order to qualify for the next STR?

Is there like a 6 or 12 month period that you got to show consistent income from the first STR to be able to count that income in your DTI ratio?

Also, if I plan to buy the second STR in another Vacation Market (Lake Havasu, AZ) that's 300 miles away from the first would I be able to finance the 2nd one at 10% down since it is in a different market?

Makes sense, so if you purchased a vacation property in different markets more than 65 miles from your principal residence than you can do it numerous times at 10% as long as you're not purchasing in the same market.  Thanks for the insight!

@Darren Looker

Is there a limit to how many of these "Vacation" properties you can buy at 10% down?  I was under the impression that you could only use this once (Second home Loan) with a conventional lender and anything after your principal residence and second home loans it will have to be an investment loan with a minimum 20% down.

I'm interested to hear more about this please

YUes good point, I'm looking within State of AZ but not necessarily within my city