Hi all,

I live in Philadelphia and am planning on using the BRRRR method for my next purchase of a three-bedroom. When I run the numbers, it makes more sense financially for me to rent out the bedrooms individually instead of together. I understand by doing this I'll probably be sacrificing more time with finding tenants and turnover, but the better margins will make up for it

My question is related to the refinance portion of the BRRRR. Does anyone if mortgage lenders will accept multiple leases on a property? (they would all be longer than 6 months)

I've read a lot of threads in the forum about the difficulties of refinancing with AirBnb income so I just wanted to see if this is as difficult. Thank you!

Originally posted by @Ryan Fulmer :

Hi all,

I live in Philadelphia and am planning on using the BRRRR method for my next purchase of a three-bedroom. When I run the numbers, it makes more sense financially for me to rent out the bedrooms individually instead of together. I understand by doing this I'll probably be sacrificing more time with finding tenants and turnover, but the better margins will make up for it

My question is related to the refinance portion of the BRRRR. Does anyone if mortgage lenders will accept multiple leases on a property? (they would all be longer than 6 months)

I've read a lot of threads in the forum about the difficulties of refinancing with AirBnb income so I just wanted to see if this is as difficult. Thank you!

If it's not done through Air BnB or VRBO, then most lenders would have a hard time with individual leases for bedrooms.  I've seen it done, but your lender pool is severely limited. 

I have a friend who has 3 homes that he does this with -he’s 27! (not my idea of fun😅).  Just figure out fair market rent and justify it.  You won’t have leases in place when you purchase.  When you refi (perhaps with the same lender) show your income and expenses. They will likely only lend based on fair market rent, not your inflated niche marketing. 

@Ryan Fulmer that would be consider boarder income since the property is not multifamily. What I suggest you do is creat a master lease maybe leased out the someone. Provide that and do whatever you want as subleasing. I don't need to know about that I just want to see you are collecting full rent payments.