@Catie Fihn It will be hard to enforce it but tell them your insurance no longer allows for it and they need to smoke outside.

This is still a very tricky area for lenders as there are not many "industry-standard" tried and true rules - many DSCR Lenders and buyers of these loans are still wary of the SRO model - that being said, it is a lot easier and more flexible to underwrite on an acquisition if you are buying and the property could be utilized as a LTR / MTR or STR as that allows for a more tailored projection (as long as the property doesn't have unique or altered characteristics that would require it to be a SRO / MTR)

Many HOAs won't allow any type of AirBnb. - Could you buy something within 2 hour drive? 

There's no high paying jobs there yes, but in a way the huge lots allowing for 1-2 big rig trucks encouraging the trucker lifestyle does. 

On my spreadsheets I’ve always deducted 8% (sell costs)  from the actual equity on my properties but I haven’t thought about all the grainy details until now!

*Commercial side of banks and some Credit Unions service their own originations and allow NOO collateral.

You also cannot rent to a family with a child under 6 unless the unit has been deleaded, the EPA lead paint disclosure form isn't enough to allow it like some people think... the unit needs a letter of compliance to legally rent to them.

Since last year of November, Fannie and Freddie has allowed borrowers to put min 5% down for conventional loans and being able to invest multifamily up to 4units.Also, the beauty of FHA is that it allows you to put 3.5% down payment to invest in 1-4 units.

Keep in mind even if the housing community doesn't expressly prohibit the use, it doesn't mean the municipality allows it, so you should check with the municipality as well since many across the country are moving to prohibit the use.

The surge in profits should allow us to finally pursue ESG initiatives.