Owner-occupied premises

Definition

An inn that is also the owner's home, which changes the financing and the recast both.

Why It Matters

Most of these are a house with guest rooms in it, so the purchase mixes a residence and a business and the accounts mix personal and operating expense in ways that take real work to separate. It also decides the loan: a property the buyer will live in is financed differently from one they will not, and some lenders will not touch the combination at all. Ask what share of the building is private, and have the recast reviewed by someone who has done one before.