Long time lurker and finally ready to pull the trigger again. I have had LTRs for the last 18 years (haven't bought anything in 14 years) and I sold them all earlier in the year because of the market and the area. Since, we have decided to buy vacation/STR property. We have found a Condotel (I had no idea this was a word/thing until 3 months ago) that we really like and want to purchase one of the units when the right one comes available. I can find anyone willing to giving me money if I put 20% down. I would prefer to be at 10% if possible. We live well below our means and both have credit scores 800+. Our current DTI ratio is about 14% including the mortgage on our primary residence. We are both W-2 earners as well.
I appreciate any insights! Thanks!
@Scott Meier : as you are discovering, condotels are notoriously difficult to finance. They have an unfortunate history of volatility in many cases.... unless you are willing to put down a more substantial downpayment, you may have difficulty finding a conventional lender to fund your vacation home/STR asset. You may want to ask the condotel developer, as they often have preferred lender partners. Good luck!
My investors will go up to 65-75% on Condotels. I just don't think you will find anyone going any higher on the LTV. They are deemed more risky to the lenders, so this is the reason they are lower LTV's with most lenders.
I hope this helps?