85% LTV Loan for one property with 3 STRs in Texas

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85% LTV Loan for one property with 3 STRs in Texas

Jill Young
Member since 2024 · 10 posts · 4 votes

I'm interested in purchasing a property in Texas (that's in a great location for STRs). It's an acreage property near the lake that has a main house (2/1), guest house (3/2), and small studio-layout unit (3 units on same property). The guest house has STR rental history but the other two units would need to be based on projections. It's a million-dollar property. I don't know what the 'appraised' value would end up being. I also have personal W2 income, if that matters.

Is there a loan out there for a set-up like this at 15% down? 

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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Jill Young:

I'm interested in purchasing a property in Texas (that's in a great location for STRs). It's an acreage property near the lake that has a main house (2/1), guest house (3/2), and small studio-layout unit (3 units on same property). The guest house has STR rental history but the other two units would need to be based on projections. It's a million-dollar property. I don't know what the 'appraised' value would end up being. I also have personal W2 income, if that matters.

Is there a loan out there for a set-up like this at 15% down? 

Hi @Jill Young, welcome to the BP Forum! Do you have experience owning and running an STR?

[email protected]
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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Jill Young:

    I'm interested in purchasing a property in Texas (that's in a great location for STRs). It's an acreage property near the lake that has a main house (2/1), guest house (3/2), and small studio-layout unit (3 units on same property). The guest house has STR rental history but the other two units would need to be based on projections. It's a million-dollar property. I don't know what the 'appraised' value would end up being. I also have personal W2 income, if that matters.

    Is there a loan out there for a set-up like this at 15% down? 

    Hi @Jill Young, welcome to the BP Forum! Do you have experience owning and running an STR?

    [email protected]
    1Reply
  • Jill Young
    OP
    Member since 2024 · 10 posts · 4 votes
    1y

    I've done a lot of research and my twin sister owned/ran a STR (so I learned from hers too), but I haven't owned a STR myself.

    0Reply
  • Nick BelskyBusiness Member
    Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
    1y

    85LTV ask on a LTR rental is a tough ask, when adding an STR factor, nearly every lender will reduce max leverage by 5%. The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. I don't see an exact location in the OP, but if this is even remotely considered rural, you are adding another LTV reduction. Now you are saying you have no experience owning/operating an STR, that's another hit. Wrapping 3 properties into one blanket loan shouldn't be a problem, save these are sitting on any sizeable acreage.

    You might get lucky and find a unicorn local bank or credit union that would consider that kind of leverage, but I would say overall, those terms are very unrealistic.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC527 Reviews
    WebsiteView Page
    0Reply
  • Jill Young
    OP
    Member since 2024 · 10 posts · 4 votes
    1y
    Quote from @Nick Belsky:

    85LTV ask on a LTR rental is a tough ask, when adding an STR factor, nearly every lender will reduce max leverage by 5%. The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. I don't see an exact location in the OP, but if this is even remotely considered rural, you are adding another LTV reduction. Now you are saying you have no experience owning/operating an STR, that's another hit. Wrapping 3 properties into one blanket loan shouldn't be a problem, save these are sitting on any sizeable acreage.

    You might get lucky and find a unicorn local bank or credit union that would consider that kind of leverage, but I would say overall, those terms are very unrealistic.

    Cheers!

     @Nick Belsky @Jaycee Greene Thank you for the response. 

    To clarify, these 3 units are on the same property. What type of loan are you speaking of (that I might pursue with a unicorn local bank)? Is it DSCR or something else? Thanks!

    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Jill Young:

    I'm interested in purchasing a property in Texas (that's in a great location for STRs). It's an acreage property near the lake that has a main house (2/1), guest house (3/2), and small studio-layout unit (3 units on same property). The guest house has STR rental history but the other two units would need to be based on projections. It's a million-dollar property. I don't know what the 'appraised' value would end up being. I also have personal W2 income, if that matters.

    Is there a loan out there for a set-up like this at 15% down? 

    Speaking of DSCR in particular, 80% will likely be your best bet versus 85%. Consider 80% with some seller concessions to bridge the gap!
    0Reply
  • Harold Sebesta
    Lender · Marlboro, NY · Member since 2016 · 71 posts · 3 votes
    1y

    Were in Texas? I have one lender that will go up to 85% but need 720 credit or better and 1.25 DSCR no rural areas

    0Reply
  • Harold Sebesta
    Lender · Marlboro, NY · Member since 2016 · 71 posts · 3 votes
    1y

    just double checked my lender is now 80% LTV for short term rentals only 85% for long term rentals

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    1y

    @Jill Young I may have a product that can work for you depending on the property specifics. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Ryan Maggard
    Lender · Cleveland Ohio · Member since 2025 · 42 posts · 1 vote
    1y

    I have lenders that can help PM me. 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Harold Sebesta:

    just double checked my lender is now 80% LTV for short term rentals only 85% for long term rentals


     Sounds about right. 

    The unicorn bank might be a local commercial/credit union. You may also want to consider buying this as a primary and living in it for a year. Most lenders are going to want 20% or more on an STR. On a DSCR loan you could do 80% LTV, however the property needs 12 months STR history or you need to show you own at least 1 STR in the past 12 months.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    I could likely do this at 80% LTV. STR specialist lender. Would love to chat/see if we can help!

    0Reply
  • Ryan Maggard
    Lender · Cleveland Ohio · Member since 2025 · 42 posts · 1 vote
    1y

    I can do 15% DSCR

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    15% down with no STR experience - you're going to have to pay a price for that. It's probably going to mean paying points at closing, a high rate, and a serious pre-payment penalty (like 5 years).

    I don't think you will find it, but if you do, it'll cost ya.

    It sounds like an amazing house hack if you can move your life around to make it your primary (and the financing will get MUCH easier).

    0Reply
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