Rental Property Investor · Delray Beach, FL · Member since 2014 · 224 posts · 169 votes
I'm looking at buying my first STR in the near future using a secondary mortgage. My goal is to then hopefully buy a new primary at some point afterwards in 2022. My lender is unsure if income from a secondary home would be permissible to be written off against the mortgage when I went to try to apply for the new primary. To be clear, I know that future income can't be used when buying the secondary home itself, but I'm talking about using the receipts after buying the secondary to show additional income when I went to buy the primary later on. Can anybody help us out here?
Furthermore, if it is allowed to be written off, how long do I need to be able to show AirBnB receipts for before a lender would accept it as income? Would I have to wait for the following year's tax return or can it be done sooner?
@Jason L. Fannie and Freddie guidelines are available online to anyone so you really do t have to take lenders word, but For short term rental you need a two year history to average.They don’t treat it as a standard rental.
Thank you all for clarifying the 2 year rule. Guessing that means if I can't offset the STR income for awhile then the only other way to buy a new primary would be to offload the debt from my current primary. Good to know that in advance.