All Forum Posts by: Jerome Morelos

@Ben Einspahr I am in this exact situation right now. Waiting patiently until I’m able to file… 

Do lenders require just 1 years tax return to use MTR/STR income? Also, do taxes, insurance, mortgage interest, depreciation get added back in?

Quote from @Tanner Lewis:

It would probably be the easiest to qualify it as a STR. MTRs can really lean either way, but it really depends on how the leases are structured. Good rule of thumb: <6 month lease = STR, >6 month lease = LTR

Most of my guests are booked on Airbnb for 30+ days 

Quote from @Derek Brickley:

Hey Jerome,

From our conversations, on a conventional primary residence loan without tax returns you wouldn't be able to use this as additional income. For your property now, this would only be able to offset the current payment from your DTI ratio. If you're able to get those items over before our call tomorrow we can go through and run more numbers based on offsetting that payment.

DSCR is always a possibility for a new home, but it would not have the benefits of a primary residence lending option (terms and down payment).

Yes working on it, however, I’m starting to think I should wait until it’s filed in my taxes before I even start looking for another property. That extra buying power will give me a better chance of finding a property within the area I’m looking in. What do you think? 

Thanks for the responses guys. I'm unfamiliar with DSCR loans but seems like something I'd be interested in using in the future. For now, I'm planning to use an owner occupied loan.

I can provide 12 months worth of income reports. Most of my bookings are from Airbnb (only 2 guests outside of Airbnb)

Hello BP, what are the lender requirements for Mid-Term Rental income? I started my MTR in Sept 2023 and some lenders I've spoken to are saying different things such as 1 year tax returns, 2 years tax returns.. Can't I provide Airbnb/VRBO Income reports to prove this? This is the only thing holding me back from getting pre-qualified for another property. 

Hello BP, I am looking for an investor friendly lender in my area. I'm planning on purchasing an owner-occupied home in the next 1-3 months and would love to discuss strategy. Thank you. 

@Dan H. I definitely agree with Dan. You're better off finding a property with an existing ADU than building/converting one. ADU valuations are still low because there's not enough comps. They value it about 60-70% of the cost to build, sometimes less (in my area). However, more and more ADUS are being built so I can foresee valuations increase in the future.

Quote from @Jacob Sherman:

What is the scenario looking like ? What type of property ? Including acquisition and construction ? 

It will be used for the construction of an ADU conversion with possibly some cosmetic rehab costs in the main house. Ideally I will be using a 5% conventional loan and will be funding the DP+ closing costs myself. They’re very flexible and just want to make a return on their HELOC. 

Hello BP! I have a family member that's willing to lend money from their HELOC for my next deal to cover rehab costs. I've never used private money and was wondering how I could structure it?