Financing Vacation Rentals

[Dawn Marie]

Has anyone financed a STR in the last few months? What rate & terms? Any recommendations on do's and don't s?

[Joseph Bafia]

It depends I guess on the approach you're taking for ownership of it.  We're doing our next one under the terms of a 2nd home, so terms are 10% down and maybe a bit higher rate then a primary mortgage.  Otherwise, I'd assume that a traditional investment property is requiring 20-30% down and higher rates.  

Keep in mind that STR income will likely not count in your favor until you have tax returns to show it, versus a bank may consider lease income on a LTR.