In Need of a Lender that Allows Student Housing/SRO

Scranton-Wilkes-Barre Metro
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In Need of a Lender that Allows Student Housing/SRO

Dominic Pizzi
Lender · Freehold, NJ · Member since 2022 · 236 posts · 85 votes

Hello all!

Does anyone know of a lender that provides loans (specifically a cash out refinance) for properties that are deviated as college student rentals or SROs?

Trying to help someone out and would love to see what we can do. 

Thank you!

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  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    2y

    Hey @Dominic Pizzi, how is the lease set up?

    [email protected]417-605-2196
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  • Dominic Pizzi
    OP
    Lender · Freehold, NJ · Member since 2022 · 236 posts · 85 votes
    2y
    Quote from @Nate Herndon:

    Hey @Dominic Pizzi, how is the lease set up?


     Hey Nate, 

    All students in the property are on 1 lease. 4 students in one SFR, the other is 9 students in an SFR (which has 8 beds and 5 bathrooms). Both cash flow extremely well

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  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    2y

    I think if it is one lease then I have a program solution for that. The issue is typically when there are multiple leases and it looks like rent by the room. We will probably be capped on income at the LTR market rents on the 1007 report, but happy to take a look if you can shoot me an email.

    [email protected]417-605-2196
    0Reply
  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    2y
    Quote from @Dominic Pizzi:
    Quote from @Nate Herndon:

    Hey @Dominic Pizzi, how is the lease set up?


     Hey Nate, 

    All students in the property are on 1 lease. 4 students in one SFR, the other is 9 students in an SFR (which has 8 beds and 5 bathrooms). Both cash flow extremely well


    I rent to ~225 students and have a similar setup. One lease for the entire house.

    I've got loans with 12-13 banks in my market (Columbia, South Carolina) and almost all of them are smaller, local banks. In my experience, there are plenty of small banks/credit unions that are cool with student rentals as long as they're all on one lease.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y

    If this is a rent by the room scenario, 

    There are a handful of DSCR lenders that are okay with it as long as there is no un permitted rooms used to rent out. They will qualify based on the market rent 1007.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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