My client recently purchased a home with a hard money loan and have successfully rehabbed it for use as an Airbnb rental. It has been operating for 2 months now. Our lender has informed us that we need 12 months of re...

Rehab costs, taxes, and interest during this phase increase the depreciable basis, providing long-term tax benefits.

Readers should seek professional advice.

They have been historically reliable over the last few years but I am hearing some rumblings of reduced leverage, slight increase to rate, or some kind of minor tweak to DSCR lending with some programs.Happy to jump on a call if you have any questions or concerns.Good luck!

So, after one year you netted $35,000 for your efforts while the property owner netted $40,000 in rent plus $150,000 increase in value.  

However, when seeking a non-recourse lender, I suggest starting by reaching out to lenders who specialize in working with self-directed IRAs, as they’re more likely to understand the requirements.

Readers should seek professional advice.

And as time goes by, rents will increase and your income will look better and better.My first investment in 2004 made $35 more than the mortgage.

In the meantime learn and figure out how to increase income/savings.

Sounds like your PM may have been inexperienced and you should seek someone who might understand the process a little better.