Need Ideas to buy New & Doing Well STR! Owner needs to sell NOW

Crystal Flower · 2026-06-26T18:57:33-07:00

If you got any ideas, I'd really appreciate it.My ex husband and I started this STR. It went live May 30. We received 13 bookings in 5 days. June July August are booked almost solid. It seems to be well on its way to succeeding as a STR.My ex husband needs to sell NOW and really wants to also walk away with some cash. Due to 2 1/2 years of a family illness, we both are tight on cash.I would like to buy the house. I think we still fall into the arms length category. He could gift me some equity. He can even help with closing costs if needed. As of July 20, my credit score should be great.I can either keep it going as a STR. I've talked to lenders about DSCR loans but it seems hard to prove future income and home value for the Loan to Value. Our STR seems to be doing better than the ave.OR I can live there and house hack it by renting out 3 fully furnished rooms. It's pretty much already set up for it because we had to get ready for the STR. Due to the 2 1/2 years of taking care of the family Illness situation, I have not had 2 years of W2's. I am job searching now and running the STR.I do not know anything about house hacking loans. Does anyone know of anyway that still makes sense for me to get a loan and buy this already running STR?Thanks for any help

JD MartinBusiness Member

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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

2mo

Renting by the room when you live there is not for the faint of heart. I would think about that pretty hard.

As for the STR, it's impossible to make any kind of judgement on its ability to succeed long term based on a few weeks of data. It's even more impossible without numbers for anyone to even give you any advice on whether it makes any sense to own as a rental or to buy your ex out.

You are probably best served by just selling and starting cleanly on your own. If you've set it up well as a short-term rental then you likely have some skills in doing so and shouldn't have much trouble replicating that success.

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James Driscoll

Banker · MA · Member since 2026 · 120 posts · 31 votes

2mo

This is a more nuanced situation than most, but there are real pathways here — let me break them down.

**Path 1: DSCR Loan (Keep it as a STR)**

You're right that DSCR underwriting typically uses a market rent appraisal (1007 form) rather than actual booking history to set the income figure — which can be frustrating when you're outperforming the market. That said, some DSCR lenders will consider a blend or allow STR income documentation if you have a solid 12-month track record. You're only a few weeks in, so you're not there yet. Worth revisiting in late fall if you can continue operating it. The good news: DSCR loans don't require W2 income at all — qualification is based on the property's cash flow, not yours.

**Path 2: Bank Statement Loan (If you have self-employment income)**

If the STR income is flowing to you personally and you're running it as a business, a bank statement loan could qualify you on 12–24 months of deposits rather than W2s. This depends on whether you have consistent, documentable deposits — even a few months of strong summer bookings start to build that picture.

**Path 3: Conventional Owner-Occupied (House Hack)**

If you move in and rent the rooms, you can potentially use a conventional loan with a lower down payment. The challenge is the W2 gap. Some conventional programs allow non-traditional income documentation, or a co-borrower. If you land a job before closing, even a short tenure with an offer letter and pay stubs can sometimes satisfy employment requirements depending on the loan type.

**On the transaction structure:**

Gifted equity from an ex-spouse in an arm's-length transaction is allowable on many loan programs — that's a real lever. Seller-paid closing costs are also standard. Just make sure your purchase price is supported by appraisal, because the LTV calculation is based on appraised value or purchase price, whichever is lower.

**Timing note:** Your July 20 credit score milestone is meaningful. Don't apply anywhere until after that hits your reports.

With 31 years in the mortgage business, I've worked through plenty of situations where someone didn't fit a cookie-cutter box but had a strong underlying deal. This qualifies. The right loan type really depends on what your income picture looks like over the next 60–90 days — W2 job, STR deposits, or both.

Happy to dig into specifics if you want to share more details.

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Jim Driscoll

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Jacob CamhiBusiness Member

Hinton, WV · Member since 2026 · 131 posts · 40 votes

2mo

it sounds like you’re in a tough spot with a really good opportunity. since your ex needs to sell now and your w2 history is short, getting a traditional mortgage or even a dscr loan right away will be hard. dscr lenders usually want a full year of tax returns for the property.

one idea is to talk to your ex about seller financing for a short period – maybe 6-12 months. this gives you time to get a w2 job and establish that income history. during that time, you can still run it as an str or start house hacking. once you have a few pay stubs, you can revisit fha or conventional loans, especially if you plan to live there. your good credit score will really help once that income is in place. it's all about buying time to get the income documentation.

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Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

2mo

@Crystal Flower

As it is doing well right now, my first suggestion would be to talk to a lender who has knowledge about DSCR and Owner Occupied Loans to see how it might be compared before changing tactics. Since getting the DSCR loan may not be easy right now, house hacking may be another viable option as long as it works out financially. The fact that you already have bookings is an added advantage.

Good luck!

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Rick Albert

Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes

2mo

I understand your ex-husband wants cash now but it appears you are in a tight situation. Maybe he is willing to do Seller financing for his portion of the equity now and then once you have a proven track record as an STR then you do the refinance and pay him the difference. He gets some monthly income coming in with a big payout at the end. It could be a win-win.

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Need Ideas to buy New & Doing Well STR! Owner needs to sell NOW

Need Ideas to buy New & Doing Well STR! Owner needs to sell NOW

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