Second home mortgage & Airbnb/VRBO

4 Replies

Hello BP.

We've closed on a property in NY state using a traditional mortgage second home. 

We plan on using the property quite a bit ourselves for vacation/getaway purposes, but we want to know if we can also do some SRT when not in use? 

Are there potential hazards involved from the mortgage side of the company? What would happen if the mortgage company "called in" the mortgage? 

Can we do this or should it be refinanced into an investment loan? 

Thanks for all your help BP!

@James Peever if you use the home yourself substantially and do some airbnb a second home mortgage should not be an issue.  Yes, they can call the mortgage if they think you were fraudulent but it is infrequent. Usually when you hear of this happening it is a fraud of claiming owner occupancy on a home bought as an investment home  not some rental use. 

Thanks so much for the advice Colleen. We are very excited about getting going with the new property, but always want to make sure we are doing it properly.

One other question for you. The county has a resort tax that STRs charge. I gather we will still need to get this tax ID for collection purposes? 

@James Peever Yes on the resort tax. I have an Airbnb in FL and the FL policy is any transient lodging less than 30 days must pay the resort/lodging tax directly to the county on a monthly basis. This is becoming more and more the norm across all states as Airbnb has become more accepted and regulated.

@James Peever    yes resort tax and talk to your accountant about expenses and such, they are apportioned according to days for personal use.  If you were working on the property that doesn't count as personal use but it has to be really working on the property by IRS rules.  So if someone is painting all day and the kids go to the beach that is  not personal use  but you can't just do some little thing.  I think it is IRS publication 535 business expenses.