Exit strategy for STR BRRRR

[Kevin Luttrell]

Hi All,

I have a unique situation that I could use some advise on. Working on a BRRRR and I need to figure out my long-term financing once the rehab is complete. The tricky parts are that I need to keep the mortgage in the name of the LLC, and the property will be used as a vacation rental. Conventional loans are out since the mortgage will be in the LLC, and most private lenders I've contacted haven't been able to help since it'll be a short-term rental (they either don't finance short-term rentals, or they estimate projected rents as if it's a long-term rental which doesn't work for the DSCR). Here are some more details:

- Single family home

- Need to cash out up to 75% LTV based on new value after rehab

- 30 year term (fixed or ARM is fine)

- Need a seasoning period of 6 months or less from purchase

- Need both the mortgage and title under the LLC

- Need a lender that will either use short-term rental income projections for the DSCR (yes I have found 1 or 2 lenders that do this), will offer a non-DSCR loan where we just qualify with our normal income/credit like a Conv loan, or will use long-term rental income projections but allow a lower DSCR (<1.0)

I have found several lenders that check all but 1 of the boxes, but unfortunately I need one that can check all of them. Does anyone have any suggestions or recommendations? 

Some other considerations:

This property is in a "rural" area, as determined by the CFPB. It's in Sevierville TN less than 3 minutes from Gatlinburg so I have no idea how it can be considered rural, but that's what the CFPB has it as and I've been turned down by a couple lenders already for that.

Some lenders have looked like good fits, but cap the new loan amount at purchase price + rehab. 75% of ARV will definitely be more than this and we need the full 75%, so that doesn't work.

Thanks in advance!