All Forum Posts by: Derek Buehner

I currently live in a single-family primary residence. Next year, I plan to purchase a second home and move into it. I intend to rent out my current home as a short-term rental. Before listing it on an STR platform, I need to make some improvements to my current home.

How can I maximize tax write-offs for these improvements? It seems that investing in improvements while I still live in the home wouldn't be tax deductible. Is there a way to take advantage of these deductions while I'm still residing in the home?

Hi Jason, yes I am renting an Appartment as my primary residence currently. That lease ends this summer. The short term rental was my first home purchase. I lived in it and rehabed it before I listed it as a short term rental. At that point I rented an Appartment to live in. ( I looked Into qualify for a second house at that point but there wasn’t a long enough track record on the str) so I’m curious now how after a year of history the numbers will be considered. 

What should I expect when applying for a second conventional loan to purchase a primary residence, considering that I have an existing short-term rental property with a year of history and an average monthly profit of $400 after expenses, including the mortgage? How do lenders evaluate the stability and income from an existing short-term rental property when determining debt-to-income ratio? Thanks in advance! 

I'm trying to qualify for my first home that I will turn into a primary residence and rent the rooms out. As my first investment, I've determined this will be a great way to get started in the real estate world. I'm in the colo springs market and I'm having a little issue with getting approved. I'm trying to qualify for a 30 year conventional loan with 5% down. I've had an LLC business that I've held for the last 4 years or so. The LLC which I created for my side business has generated 20-30k in revenue over the last couple of years. In 2019 I worked a job as a w2 employee and my tax returns showed about 60k from that position. Now in 2020 and 2021, I'm with a different employer making much more but I'm paid as a 1099 contractor to my LLC. The problem I'm having is that the jump from the income shown on the LLC in 2019 is significantly less than what was paid to it in 2020 and skews the 2-year average needed. If the income I made in 2020 was in the form of a w2 or if in 2019 the w2 income was paid to the LLC, I wouldn't be having this issue. My lender explained that I have a few options, one is to wait until I can file 2021 taxes, and then the 2yr running average is adequate. The other being to bring in a co-borrower or cosigner. I'm trying to avoid those options if I can. I have a few ideas that pertain to restructuring how I was paid under my LLC. Any out-of-the-box ideas that don't raise any red flags or are unethical? I'm wondering if anyone has been in this position before and what advice you may have.