Looking to BRRR then Airbnb. Are there lenders?
Hey experts! Im looking to BRRR my next investment but want to Airbnb vs Long Term Tenant. Are there lenders that will work with this?
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Hi Zachary!
You can utilize a hard money bridge loan to kickstart a BRRR strategy with a short-term rental. HML's can finance up to 90% of the purchase price and 100% of the rehab costs, allowing you to complete the renovation with minimal capital out of pocket. Once the rehab is complete and the property is stabilized, you can refinance into a DSCR loan that allows short-term rentals (Airbnb/VRBO, etc.), depending on the location and zoning.
Keep in mind, most lenders will require a seasoning period—typically around 3 months—before you can do a full cash-out refinance, so that’s something to plan for as you run your numbers.
Do you have any experience with STRs? And where is the property located? I’d be happy to see how I could assist.