All Forum Posts by: Kyle Moore

I refinanced my primary residence 2 months ago to take advantage of the great rates right now. I went from 4.875% to 3.600% and saving almost 300 a month.

I just went through my loan documents from the refi and found that the occupancy requirement is the standard 12 months. Prior to the refinance, I had been living in the house for a little over a year.

Is the new loan really going to require me to stay in this house an extra 10 months? Am I in deep trouble if I move to a new primary residence and the lender "finds out"? I am almost regretting the decision to refinance now because it seems that I am stuck here for another year!

Greetings all,

I have been told by two lenders now that you can NOT use STR income from a primary residence to qualify for a loan. The income is documented on Schedule E. They WILL use the STR income from my non-primary residence to qualify (also on schedule E).

Both lenders claim these are Fannie/Freddie guidelines and not the result of the an overlay. Has anyone been able to overcome this obstacle?

Do most lenders require a signed lease agreement in place before allowing you to refinance out of a hard money loan?

My plan is to BRRRR a short-term rental which will not have a lease agreement.

Can the refinance be done based on 75% of appraised rental value instead of relying on a signed lease?

Greetings all -

I will be purchasing another Airbnb property next year and I am trying to secure the financing. One thing I do know for sure is that my ability to qualify for another mortgage is completely dependent on my Schedule E. For those who operate short-term rentals, how aggressive are you on expensing your supplies, cleaning costs, materials, etc.? I am afraid that including too many write-offs on my tax return will have a negative impact on my Schedule E and my DTI will not allow me to afford another mortgage. Thanks.

Greetings all,

Has anyone tried the SHARED ROOM model on Airbnb?

I currently rent out 4 private rooms in a shared house. Each room has a full size bed for 2 and rents for $30/night.

I have seen some successful listings in my are where folks have set up a “hostel style” house - fitting up to 4 people in a shared room using 2 twin bunk beds - and charging $20 a night for each bunk. That’s turning a $30 room into potentially an $80 room!

Sound weird? Well, these listings get GREAT reviews and have a steady amount of booking. Seems that there is a segment of the market totally OK with sleeping with strangers.

Has anyone tried this?? Success stories? Horror stories? I may try out this model with one of my rooms and see how it goes!

Any success stories combining the BRRRR method and Airbnb? This is a topic I do not see discussed here very often.

I have two Airbnb properties that cash flow phenomenally. More than double what a long term tenant would ever pay. I have bought both properties using conventional financing but want to try the BRRRR method on my next property.

Has anyone been able to use STR income like this to qualify for a cash out refi? Any other pitfalls form combining STR and BRRRR?

Greetings all,

I have found a very lucrative strategy to capitalize on my local short-term rental market using single family residence. I now have over 18 months experience in managing one home and will be closing on my second home at the end of the month. The returns have been very generous and I am confident that I am replicate the same business model with properties in the future. However, obtaining financing will be my main roadblock.

Both properties have been financed using owner-occupied conventional loans with a small down payment. With 2 mortgages my DTI ratio is now tapped out in buying

anything in the near future using this method. I am looking for any sort of creative financing ideas that can be used to purchase a third property in the next 12-18 months. Any suggestions are appreciated.

@Andrew Postell

Thanks for the info. Very helpful.

I reviewed my current mortgage docs and there is certainly a clause for retaining occupancy for 12 months. That would be this December. Ideally, I can push out the close on the second house and leave it unoccupied until then, which would allow me to satisfy the occupancy period on my first home. Would a lender be on board with that?

I have zero intention to commit occupancy fraud - though I would like to better understand how lenders can be flexible with the 12 month period. Aside from the income potential I have no good reason to move - the houses are nearly identical and no more than 5 miles apart. And quite honestly, I had no intention of moving this early until this opportunity came up.

Hello all,

I am currently “house hacking” a single family residence with Airbnb. I rent out 4 rooms while living in the 5th bedroom in a separate suite. This produces significant cash flow each month and I am living in the home for free.

I want to purchase a second owner occupied home and do the same thing, while leaving the first home operating as an Airbnb. However, I need to better understand the rules around financing and owner occupancy.

I purchased the home 8 months ago using a 5% down conventional owner occupied loan through Wells Fargo. Ideally I can finance the second property the same way and switch my primary residence to the second home, while renting out my portion of the first home to a long term tenant.

What is the best way to obtain financing for the second home? Would having a signed lease agreement in place for the first home count towards my DTI qualification?