Looking for Financing Solutions for Multi-House STR Near Hunter Mountain

Upstate New York, New York
Classifieds
1yFollow

Looking for Financing Solutions for Multi-House STR Near Hunter Mountain

Matt Turlip
Rental Property Investor · NJ / NYC · Member since 2019 · 5 posts · 3 votes

Hey BiggerPockets community! I'm under contract for a unique short-term rental property in Hunter, NY. It's three houses on a single parcel (7BR main house, 5BR lodge, and a 2BR cabin) generating over $250K in annual STR revenue (peaked at $350K). Purchase price is $1.365M.

Appraisers keep trying to force it into a standard DSCR "box," but with three separate dwellings and solid income, it really needs a commercial/cap-rate approach. I'm open to a private or bridge loan if needed, and I'm also exploring a commercial loan via local banks.

Has anyone here financed a similar project in the Catskills/Hunter region? Any lender recommendations or creative financing tips would be greatly appreciated! Feel free to DM me if you have referrals or want more info. Thanks!

2Reply
18 views

5 Replies

Jump to latestLatest
  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 174 posts · 89 votes
    1y

    Absolutely, happy to help --

    [email protected]737-773-3717
    0Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    1y

    Hi Matt,

    Is your primary concern about the appraisal the valuation? If the comparable sales are going for 1.365M it should be good to go. If this is the only property with multiple houses in one lot (and this isn't a triplex), some appraisers may mark it "unique" which could be problematic. If these multiple house on 1 lot situation is not unique, I would look into who financed those properties then go from there.

    If the concern is market rent, there are programs that go off of AirDNA or "STR comps" so that should be easy to clear.

    310-848-9776
    0Reply
  • Matt Turlip
    OP
    Rental Property Investor · NJ / NYC · Member since 2019 · 5 posts · 3 votes
    1y
    Quote from @Ko Kashiwagi:

    Hi Matt,

    Is your primary concern about the appraisal the valuation? If the comparable sales are going for 1.365M it should be good to go. If this is the only property with multiple houses in one lot (and this isn't a triplex), some appraisers may mark it "unique" which could be problematic. If these multiple house on 1 lot situation is not unique, I would look into who financed those properties then go from there.

    If the concern is market rent, there are programs that go off of AirDNA or "STR comps" so that should be easy to clear.


    Ko - you got it. The unique situation torpedo'd the last appraisal with the appraiser ending up using some very non comparable comps. Leading to use small triplex's with $1k monthly rents on a subject property with 3 years of $250K plus annual STR revenue. Or even similar houses of the same individual sizes renting for much higher on an annual basis than made the report. We're going to go for a rebuttal with some applicable market comps but that's always a challenge.


    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Matt Turlip:
    Quote from @Ko Kashiwagi:

    Hi Matt,

    Is your primary concern about the appraisal the valuation? If the comparable sales are going for 1.365M it should be good to go. If this is the only property with multiple houses in one lot (and this isn't a triplex), some appraisers may mark it "unique" which could be problematic. If these multiple house on 1 lot situation is not unique, I would look into who financed those properties then go from there.

    If the concern is market rent, there are programs that go off of AirDNA or "STR comps" so that should be easy to clear.


    Ko - you got it. The unique situation torpedo'd the last appraisal with the appraiser ending up using some very non comparable comps. Leading to use small triplex's with $1k monthly rents on a subject property with 3 years of $250K plus annual STR revenue. Or even similar houses of the same individual sizes renting for much higher on an annual basis than made the report. We're going to go for a rebuttal with some applicable market comps but that's always a challenge.



     Hi Matt, 

    Most residential DSCR lenders are going to use the sales comparison approach for value. You might want to try a local commercial lender that is okay with using short term rents when determining value.

    What did the appraisal come out to? Appraisal revisions are always a challenge, so you might be better off switching lenders and ordering a new one. If income is the issue, there are a handful of lenders that can use 100% of AIrDNA estimates as long as you have short term rental experience. 

    [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 financed an STR acquisition in Hunter, NY very very recently, but it was an SFR. The only concern would be value wise if the property couldn't achieve the sales price in value or higher using a sales comp approach, or a blend of the sales comp and income approach. Do you have an appraisal on hand?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free