After that, you are free to use the property as you wish with zero restrictions.

Would love to hear about pitfalls, lender restrictions, and any alternative approaches you’d recommend.Thanks in advance for sharing your experiences! 

If the price is low enough, it could be worth getting creative and taking a long-term approach to land use while checking local restrictions.

Also, as this co-living thing is generally new and catching on in some cities, I would hate to have this whole strategy ruined by a new restriction set by the city for co-living or the crazy rise in mortgage cost from property taxes and be forced to revert back to the traditional route.So my question is for those that are already doing the co-living strategy; are you all buying the home purely off of the co-living cash flow, or are you all considering the cash flow from renting the home with just one tenant as well?

Also, knowing Decatur’s rental laws and zoning inside out is crucial, as some areas have restrictions on multi-family properties.It’s also a good idea to walk the neighborhoods at different times of the day.

Reasonable points are customary and nothing that should surprise a borrower.I assume, of course, that you understand the usury restrictions in OH and will remain compliant.Good luck to you, Curt.

Lenders offering DSCR loans are generally more concerned with occupancy than how the property is owned, although for some that translates into more restrictive guidelines. 

Given the figures youre providing, youre probably getting hit with a restriction on LTV and loan size due to the debt service (or lack thereof).

First I would make sure where you are building allows STRs with no or few restrictions.

Private lenders generally have fewer restrictions, a faster process, and can structure loans based on the property’s value rather than just personal income.