Property Manager · Nashville, TN · Member since 2021 · 15 posts · 7 votes
Hey BP Network! This is my first post so please go easy on me haha. Any advice/help would be greatly appreciated.
I am new to real estate investing and closed on my first house in the middle of April which I intend on turning into my first investment property through STR or LTR. I currently have an owner occupied conventional loan on this property which I believe will create some complications in regards to renting. Will I have to get to +20% equity and refi into a NOO conventional? I have downloaded the STR checklist to apply for my STR permit in Nashville. My girlfriend and I will begin the search for our 2nd property in the very near future.
Real Estate Agent · Nashville, TN · Member since 2019 · 17 posts · 3 votes
5y
Hi Brent! I would be happy to help you here to navigate this question. I am probably not the MOST qualified to answer your question in regard to the best way to finance/lending.
If you can shoot me a direct message with the property address or connect/message me on LinkedIn then I can help you best understand STR for your property.
Real Estate Agent · Ventura, CA · Member since 2020 · 340 posts · 166 votes
5y
Hey @Brent Kakwitch thanks for posting! I just sent you a message with more details, and feel free to disregard this if you've already looked into it but I think your complications may be more with zoning than with the loan when it comes to NOO STR. There are different zoning classifications that will allow you to obtain an owner occupied permit but won't let you hold a non-owner occupied permit once you move out. For example, RS zoning will generally allow you to apply for owner occupied permits but will not issue non-owner occupied permits.
As far as the loan goes, I'm not a lender so this is simply my opinion/educated guess, but the way I understand it is you'll be turning your property into an investment property so you'll have to show income/potentially find a lender who will count Air bnb income to offset the mortgage before applying for another mortgage UNLESS your DTI ratio is low enough that you could support another conventional loan without using income to offset it. The lender who currently holds the note may or may not count Airbnb income to offset the mortgage, so check with them on that.
Anyways, I hope this is helpful and please if anyone reading this has a better answer about the mortgage correct me on it - I'm about to go through the same process so I definitely want to make sure I have it right as well!
Property Manager · Nashville, TN · Member since 2021 · 15 posts · 7 votes
5y
@Tony Clark that is great input/feedback! Thank you so much for taking time to respond! Pete was able to help me out and let me know what my property is zoned as. I'll move over to DM to finish our conversation.