There are two pieces to the loan calculation - loan to value (needs appraisal), and debt service coverage ratio (rental income vs. mortgage).

Hi Anita, If you are using these third party platforms like Airbnb & Vrbo, you don't need to worry about screening tenants besides having settings on to review guest reviews and filter what you can; but in the end, both these third party platforms have insurance coverage anyways.

The one to four is a very comprehensive contract that covers everything and even has room for special provisions when something out of the ordinary needs to be spelled out.When doing not so normal purchases like a sub-to, I dont use the TREC, but one that I created from several other contracts.

But even if you fall under the normal amount for debt coverage there is other loans like DSCR  which qualifies the propertys income and not your income.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5The best protection for you and your investments?

The other thing to consider is that a bank might do 80% loan to value but also require a Debt Service Coverage Ratio of 1.2. 

Some lenders may also want to see law and ordinance coverage in your insurance and perhaps a rebuild letter from the city stating that the property could be rebuilt as a residential 4plex if destroyed. 

They do everything for you (payments, taxes, insurance coverage) - the website and app are easy and functional and you can vet your guests!

- Insurance Implications: How might allowing pets affect my homeowner's insurance, and what steps should I take to ensure proper coverage?

How do you navigate that challenge in a market like Utah, where achieving that kind of rent-to-mortgage coverage is becoming nearly impossible?