Hi everyone,

I'm looking for advice from investors who have gone through a similar situation, particularly those who purchased a new primary residence and converted their previous home into a short-term rental (Airbnb/Vrbo).

Here's a little background on my situation:

• First home: Purchased in May 2024 with a conventional mortgage.

• Second home: Purchased in August 2026 with a conventional mortgage as my new primary residence.

• Current situation: I've moved into the new home and plan to turn my previous residence into a full-time, STR (Airbnb).

• Location: Indiana.

My goal is to structure everything correctly from the beginning, protect myself from potential liabilities, maintain compliance with my mortgage agreements, and properly manage rental income, expenses, and taxes.

I'd especially appreciate advice on the following:

1. Transferring the property into an LLC

For those who transferred a former primary residence into an LLC while keeping an existing conventional mortgage, how did you handle it?

• Did you transfer the deed to your LLC, or keep the property personally titled while operating the rental through an LLC?

• Did you obtain written approval from your mortgage servicer before transferring ownership?

• Did you encounter any due-on-sale issues, refinancing requirements, or problems with your lender?

• Did you use a real estate attorney or title company to handle the transfer?

2. Existing mortgage and occupancy requirements

Did you have to notify your existing lender before converting the property to a rental? Were there occupancy requirements or restrictions that affected your ability to rent it?

3. Insurance and liability protection

• Did you switch from traditional homeowners insurance to a short-term rental or commercial policy?

• Were you able to maintain your existing mortgage while changing the insurance coverage?

• Do you carry an additional umbrella liability policy?

• If you operate through an LLC but personally own the property, how do you structure your insurance coverage?

4. LLC structure and business operations

For those who have successfully made this transition:

• Did you create a separate LLC specifically for the rental property?

• Do you have the LLC collect Airbnb/Vrbo income and pay property-related expenses?

• Did you open a dedicated business bank account?

• Did you personally lease the property to your LLC, or use another arrangement?

• What structure has worked best for liability protection and keeping finances separate?

5. Taxes, deductions, and accounting

How did you handle the tax transition from a primary residence to an investment property?

I'm especially interested in depreciation, mortgage interest, property taxes, insurance, repairs, furnishings, startup expenses, and the potential tax implications of eventually selling the property.

Did you work with a CPA specializing in short-term rentals? Did you use QuickBooks, Stessa, or another platform to track expenses?

6. Lessons learned

For anyone who has already converted their former primary residence into an Airbnb, what would you do differently?

Were there any unexpected lender requirements, insurance gaps, tax consequences, legal expenses, or LLC complications that you wish you had known about beforehand?

Ultimately, I'm trying to understand the safest and most practical way to make this transition without unnecessarily refinancing my existing mortgage or creating legal, financial, or tax problems.

I'm not looking for ways around lender requirements or regulations. I want to do everything correctly while protecting my assets and setting up the business for long-term growth.

I'd really appreciate hearing firsthand experiences, recommendations, and lessons learned from anyone who has navigated a similar situation.

Thanks in advance!