How to get commercial mortgage via new company

Question

I plan to buy a single family home in Austin and, per the city's STR rules, it has to be either an owner-occupied or commercial residence. If the current plan is to open an LLC to apply for a commercial mortgage loan, how is this possible with a newly created company?*
*the belief is that I will have to co-sign (which keeps me personally liable; maybe able to refi after 1 year of that?)

Will you please help with your thoughts on this topic?

Jordan Moorhead · Answer

@Kevin Melanson I don't think they'll consider it commercial just because of the mortgage. I'd recommend calling the city to verify but no matter what way you structure it a single family is residential. I have a way to buy STR in Austin I believe if you want to chat.

Ryan Kelly · Answer

@Kevin Melanson as @Jordan Moorhead stated, getting an LLC and commercial loan doesn't change the fact it's still a residential property. The commercial STR license is for apartment buildings and condominiums with multiple units that can STR. I would absolutely chat with the city licensing dept before moving forward with your plan.

If you want to skip STR and focus on 30-day plus rentals, you can avoid the licensing restrictions.

How to get commercial mortgage via new company

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