Capital for first STR

[Nicolas Mayta Canlle]

How much capital should I save to invest in my first STR? Any advice based on personal experience is welcomed!

[Mel Adams]

Hey @Nicolas Mayta Canlle! You can do as little as 10% down which is a second home loan, 15% down investment loan, or 20% down. 
-10% down can be harder to qualify for because it's based solely off your DTI. No projected rental income can be used. There are other requirements with this type of loan too, check with your lender or Google. Someone mentioned having to stay there 14 days…per my lender they've done away with this and it's just "some time" now. No specific number of days.

You also have to consider whether you’ll be buying a furnished or unfurnished property. If it’s not furnished, depending on the number of bedrooms, sq ft, and market, I’d budget anywhere from $10k-$40k. 

Your lender will also want to see you have reserves in the bank showing you can still cover the mortgage if your STR doesn't produce enough income. Lenders usually want 3-6 months of reserves.

Hope this helps!