@Pretty Khare As Ruben and John mentioned above, you can utilize a cost segregation study on your STR property to reduce taxable income (or create a taxable loss) to offset against your W2 income, but you need to ensure you are following the IRS guidelines very carefully.

After getting a good amount of equity in the house for future HELOC funding, I was going to move out of it and use the property as a rental utilizing a lease option, or, rent to own agreement. 

Utilizing this strategy with FHA or Conventional loan products.Although sometimes the 4 units can be hard to find sometimes you can compromise and find maybe a 2 unit or 3 unit with 4 units.

Unique features like land and outdoor amenities can add value, and utilities can increase rent.

Pay to separately meter the utility.

@Kenneth Willis I can probably help.How many lots, what is the lot rent, how many are occupied, what is the source of utilities and who pays the utilities?

And FYI- if you're going to utilize an Engineer, they may not be comfortable being responsible for the entire house.

I usually suggest to my clients the equivalent of 3 months’ rent held in escrow and double the daily rent rate to be charged in the rent-back agreement starting after agreed upon move-out date if they are not out, with seller maintaining all utilities and repairs on appliances and systems until move out, especially if you’re planning to renovate, anyway.

Hey John,Sounds like the answer would be to utilize a DSCR lender that utilizes either pre-established STR rental income (if you can prove with AirBNB/VRBO statements) or a few that are still UW with AirDNA or a similar STR income projection program.I am aware of a few still doing it at this time, and if you can show that you know what you are doing you shouldn't see much of a cut in LTV if at all.Happy to connect and see if we can help.Good luck!

We bought at 375k, are currently renovating the basement, and have income of $4725 (before utilities, insurance, and debt service) right now.