Can You Airbnb/ STR Your Mortgaged Property?

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Can You Airbnb/ STR Your Mortgaged Property?

Joval Mathai
Investor · Northern Jersey · Member since 2022 · 50 posts · 11 votes

Hi All, I am looking to see if I rent my basement as Airbnb/ STR while I live in the property. Is it legal to do it on a Mortgaged Property with PMI on it ?

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
3y

@Zach Edelman brings up  a good point.  It is likely not an issue at all but the issue could more be you living there than someone else, if it is classified as an investment property mortgage.  If not you are good to go!

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  • John Mausteller
    Real Estate Agent · Outer Banks, NC · Member since 2019 · 168 posts · 116 votes
    3y

    I don’t see why there would be any reason for it to be illegal to do so.   Just like you are allowed to rent a room to a tenant in your mortgaged home.   After they close the loan, and you are making on time payments , rarely do they ever look back into anything anyways.  

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  • Jamie Banks
    Real Estate Consultant · Reston, VA · Member since 2022 · 513 posts · 521 votes
    3y

    Hi Joval, I rent out a part of my mortgaged primary residence as a furnished rental. I haven't seen stipulations around renting out a property that is mortgaged; however, check with your HOA (if you have one) to ensure short term rentals are permitted.

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  • Melissa Nash
    Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
    3y

    shouldn't be any reasons that I have heard of before. Go for it! 

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    This shouldn't be a problem at all...people do "airbnb house hacking" all the time.

    [email protected]330-557-3021
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  • Frank Barletta
    Rental Property Investor · New York, NY · Member since 2023 · 163 posts · 95 votes
    3y

    Check your mortgage paperwork.

    Check your local laws.

    Your intention today was different from your intention when purchasing your home :)

    1Reply
  • Michael DiossaPro Member
    Investor · RI · Member since 2023 · 191 posts · 163 votes
    3y

    DO it. Make that money!!

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Absolutely 

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Unless your city has regulations against it, it shouldn’t be an issue.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Joval Mathai

    This is not a question about having a mortgage it’s a question about whether your zoning bylaws allow it. You have to check with local ordinances to see if it can be done

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  • Richard Elvin
    Investor · Cleveland, TN · Member since 2016 · 279 posts · 187 votes
    3y
    Quote from @Chris Seveney:

    @Joval Mathai

    This is not a question about having a mortgage it’s a question about whether your zoning bylaws allow it. You have to check with local ordinances to see if it can be done


     What Chris said. Make sure you let them know you will be occupying the str. Owner occupied seems to be a lot less restrictive, as an overall generalization. 
    It sounds like a great plan!

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  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    As long as there is no language in the loan docs stating that you can't occupy the subject property (I know this is the case for DSCR), then you should be good.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    @Zach Edelman brings up  a good point.  It is likely not an issue at all but the issue could more be you living there than someone else, if it is classified as an investment property mortgage.  If not you are good to go!

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Joval Mathai
    OP
    Investor · Northern Jersey · Member since 2022 · 50 posts · 11 votes
    3y

    Thank you all for the input, much appreciated. 

    1Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    I would make sure it’s allowed in your city. I wouldn’t be worried about the bank?

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  • Joval Mathai
    OP
    Investor · Northern Jersey · Member since 2022 · 50 posts · 11 votes
    3y
    Quote from @Brooklyn McCarty:

    I would make sure it’s allowed in your city. I wouldn’t be worried about the bank?


     Thank you Brooklyn

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