need lender who understands cost segregation on taxes

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Lyndsay Zwirlein
Lender · Member since 2020 · 331 posts · 209 votes
3y
Quote from @Steve Armstrong:

We are trying to buy a short term rental, and need a good lender. The lender needs to understand cost segregations / accelerated depreciation on our tax returns. I appreciate your help! Steve


Hey Steve! If the deprecation from your cost seg is listed on the schedule E of your tax returns, that can be added back and used in the rental income calculation. Happy to help if you need a set of eyes. I am a loan originator (and STR investor) for conventional and DSCR loans.

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  • Dave StokleyBusiness Member
    Property Manager · Cleveland, OH · Member since 2015 · 705 posts · 799 votes
    3y

    Assuming you showed a loss and need to convince them you really didn’t lose money? Good luck, underwriters don’t think like that.

    You're better off getting a DSCR loan from one of the lenders that will use Airdna data for the income side. Check out Host Financial and Aloha Capital.

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  • Lyndsay Zwirlein
    Lender · Member since 2020 · 331 posts · 209 votes
    3y
    Quote from @Steve Armstrong:

    We are trying to buy a short term rental, and need a good lender. The lender needs to understand cost segregations / accelerated depreciation on our tax returns. I appreciate your help! Steve


    Hey Steve! If the deprecation from your cost seg is listed on the schedule E of your tax returns, that can be added back and used in the rental income calculation. Happy to help if you need a set of eyes. I am a loan originator (and STR investor) for conventional and DSCR loans.

    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    It is pretty standard for lenders to add back non-cash expenses such as depreciation for DTI calculations.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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