All Forum Posts by: Edward Wodziak

 I've only heard of as low as 10% DP on second homes, which is residential. Commercial will be at least 20%.

Ask the owner if they will carry back a 2nd position mortgage for some or all of downpayment.

Actually it's different. STRs if the average stay is less than 30 days (which is the definition of STR) the depreciation schedule is 39 years, like commercial properties, as opposed to long term rentals which are on a 27.5 year schedule.

 Not sure if that right since my property is not zone in commercial use, but in residential.  Where is this info in IRS where I can look this up?

Hey Jordan! Glad to hear about your STR success!!!

I've been in the STR world for about 4 years now and I think you've got a great question! With still holding something zoned residential I've really only been able to come up with one solution: I've essentially structured my STR property into an LLC and then took out a business loan after showing at least 7 deposits in my business account for three or more months in a row. The bank is essentially looking at my business instead of the house, and they're lending based on the revenue the business is producing. The more deposits and the larger the deposits determine the amount of money they're willing to lend.

I'm not sure if this is quite the answer you're looking for, but its what i've done twice now and it is the only thing i've really been able to put together thus far. Kinda a weird way to go about it, but hey, it works.