Refinance or Purchase with STRs

2 Replies

This would apply to any refinance or purchase, but I am currently trying to refinance my personal house. My issue is my other properties (3) are STR and do not have 12 months of history yet on my tax returns. So banks so far said they would not consider any income on DTI.

Can I write a long term lease with my LLC, have my LLC collect STR revenue and then pay me the lease payment? Would this pass underwriting? Does the lease need to be seasoned?


The underwriters would unfortunately apply the lease amount you are now in contract with to your LLC and count that against your DTI, but not give you credit from the income. The STR have that lender downfall. I am waiting out one of my rentals to turn it into a STR after the lease is up and the first tenant is out. That first 1 year lease provided me the immediate DTI gain needed. This has been my experience on a local lender level.

Woulnt that increase my DTI, or are you saying they would count the lease payable from my LLC as my lease payable?