Change in plans for DC AirB&B - Suggestions?

Question

I just became aware of the rule that was passed a few months ago regarding Air B&B in Washington DC on second homes. I have plans to get a free and clear property under control in capitol hill with an 8 to 12 month purchase option (because they're not ready to move out and sell just yet) then put a rehab VA conventional loan to cover repairs and upgrades, then air B&Bit (other than the roof, the home has all original everything so I'm not quite sure how to estimate needed repairs) Now because of this rule I can't. Looking for suggestions and alternatives I've been studying for years but this would be my very first deal if I can get it to work. All suggestions are welcomed, I'm a newbie.

Nick Mack · Answer

@Ron Gallagher We may end up doing that. Time will tell, though.

Ron Gallagher · Answer

You could move into the property, the new airbnb law doesn't restrict short term rentals for your primary residence.

Marian Huish · Answer

There's a whole lot of questions here @Nick Mack...  so after waiting for the current owners to move out, they're going to lease the property to you under an 8-12 mo. lease to purchase option contract.  (Lease to purchase options are very rare in DC, particularly in Capitol Hill because the RE market is so strong!) Then you hope to get a VA conventional loan on a home that you don't intend to live in and it needs major repairs!?  Have you already spoken to a VA lender about this?  If you're not familiar with VA loan requirements, you may want to read this:  https://www.maxrealestateexposure.com/fha-va-repair-requirements-home/ .  If you can get over the hurdles of obtaining the loan, you may want to owner-occupy the property, find a long-term renter, which shouldn't be a problem, or rehab and flip... but I would recommend buy and hold.  Anyhow, best of luck!