Questions about airbnb & DTI
Trying to buy a new primary this year and trying to figure what my budget is.
Last year I was trying to get a HELOC and running into DTI issues because my Airbnb income was on Schedule C. I was basically being double hit for my mortgage, hoa, etc; I was paying them all in my Schedule C, but then lenders were again adding it to my DTI as an expense. So I never got the HELOC.
This year, I am able to convert to schedule E, because my average rental period exceeds 7 days. I have 112k in Schedule E revenue, with a 36k profit. The mortgage for the airbnb is $2000/mo, HOA $1100/mo, tax: 700/mo insurance 200/mo (all included in the schedule e already)
Questions are these:
How does this all look on DTI?
Putting it on schedule E, does it erase my DTI for that property?
Do I get credit for the profit?
Do I need two years of schedule E for it to count? Or do I need a signed lease (which I won't have because its an airbnb...)
Any advice is appreciated!