Short term rental Hard Money Loans
Good Morning!
I was wondering if anyone here had successfully used a hard money loan to finance an STR? If so, is there someone you recommend that services Twin Cities, Minnesota?
Also, please tell me if If there is a reason I should avoid them or if there is something better that I don't know about. I am looking at purchasing a turnkey property with a 30 year rental program.
Thank you so much!
Most Popular Reply
When you reference "Hard Money" are you referring to a fix and flip or bridge loan, or just non-QM? DSCR for STRs is commonly mislabeled under the "hard money" umbrella, when it's in fact a 30 yr fixed, fully amortizing loan (same structure as Conventional), with rates similar to conventional.
Also, is this acquisition a turnkey property, or one that needs work? If it's turnkey, and all your worried about is DTI, there are other good options for you other than "Hard Money" loans.