Airbnb Rental Income - Schedule E

3 Replies

Greetings all -

I will be purchasing another Airbnb property next year and I am trying to secure the financing. One thing I do know for sure is that my ability to qualify for another mortgage is completely dependent on my Schedule E. For those who operate short-term rentals, how aggressive are you on expensing your supplies, cleaning costs, materials, etc.? I am afraid that including too many write-offs on my tax return will have a negative impact on my Schedule E and my DTI will not allow me to afford another mortgage. Thanks.

There are quite a few mortgage products specifically designed for investors without DTI metrics included. All you need is a good FICO score, 20% down payment and the rental property has proven income.

@Matt Castle

I just ran into this issue last week. I need a national lender that can help for non owner units 1-4

My issue is I have a negative $705k from cost seg in 2018 and the underwriter had an issue with my debt to income because of this “loss”. I can qualify for a $5m+ loan with no problem with my personal financial stamens but can’t get a $300k loan for 1-4 units...

This does not affect me w 5+ units the multi family buildings I’m buying.

Pm me referrals im buying in KS MO

@Jason Graves the lenders I mentioned above generally stick to short term rentals for "no DTI" requirements b/c most of STRs in my area are cash cows (250k-350k buy in @ 35k-60k gross rental income per year).

I might be able to find you a national MFR lender with no DTI metrics, but it would likely be a straight up asset lender at 7% or greater and the down payment requirements are higher.

DM me when you get a chance and shoot me your contact info. If I find a lender, I'll have them contact you. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here