Investor · Moab, UT · Member since 2016 · 101 posts · 27 votes
I have a great deal on purchasing another nightly rental. I currently own one and it does better than any of my 5 other long term rentals (all of which cash flow). A friend wants to sell me his condo for $187,000. The one I bought in the same complex in April I paid $206K. One just sold for $219K, and for the next phase of building they are going to list in the $240s. The appraisal when I bought mine was $211K. Needless to say it is a great deal. I'm having trouble getting financing though since I have bought the last 2 properties this year (they don't show up on taxes, and the nightly rental does not have a lease to support it. I can document the cash flow since it has mainly been through airbnb for a private lender). Also, last year I bought a place but it only shows on taxes for half the year. I'd love to hear ideas on how to finance this or touch bases with someone who might be interested in lending. Also, I do have a lead on one private lender through a friend of mine. If anyone has an example of how to set up the business/lending proposal that they would be willing to share with me, I'd really appreciate that. Thanks in advance.
Conventional financing as you stated, doesn't recognize Airbnb as stable income - as you stated it needs a 1-2 year history on tax returns. A property that you bought and reflects 6 months or greater on your tax returns counts as the entire year - as you have stated. You know your guidelines well! Do you have someone that would be willing to partner with you on the loan and you can refinance in the future once you can include more rental income? A spouse? A sibling? A parent? A close friend?
Investor · Moab, UT · Member since 2016 · 101 posts · 27 votes
10y
Thanks @Jerry Padilla. Probably not. But in the event that I do find someone, how does that work exactly? My name is on the deed but both peoples are on the loan? And when you refinance, you simply take theirs off the loan? Thanks.
If they are on the loan they will have to go on the deed as well. It is typically considered a 50/50 partnership. Do you know what your DTI is? You can message me privately, if you don't want to post here.