All Forum Posts by: Scott Mackinnon

Thanks for the input.

I`ll talk to TD bank who I financed a ministorage loan with and see if they would give me a long term loan and use the short term rental income to qualify. They are a portfolio lender and may do it since the property is residential and not commercial and I have 14 years experience owning apartments. I just don't want to do a short term commercial loan for 5 years amortized over 20-25 years with a balloon payment at the end and prepayment penalty for the full five years like I had with my ministorage loan.

If I have to get that type of loan the cashflow would be tight but once you get some type of loan to finance the property, I think you could probably refi in a couple years and the conventional lenders may use the income if it is reported on your tax returns under an LLC, C corp or S corp.

I`m selling a 31 unit apartment bldg. and looking to do a 1031 exchange and have been looking at investing in STR but can`t find a lender that will let you use the short term rental income to qualify. The banks I`ve talked to want to see a long term lease agreement to be able to use the income. The property I`m interested in is at the beach and would be the perfect property for a STR. It has 3 single family homes on 1 lot.

I guess I could always buy it with long term leases in place and turn it into a short term rental afterwards but I was wondering if anyone  has had any luck or found any other ways to finance without going through a traditional lender or getting a short term loan with a balloon payment from a community bank.

One thing I forgot to mention is the title to the property is in a single member llc and I'm the single member. My brokers license is in a different single member llc that I control as well.

I have a real estate brokers license and will be selling an apartment bldg that i own and doing a 1031 exchange. I have it listed with another broker to handle the sale but  when I purchase the replacement property can i represent myself and get paid a commission without nullifying the exchange?