Looking to Buy Our First STR - Advice on Investment Loans and Comps?

Question

My wife and I are looking to move on our first STR.  We're looking for something that is currently active and turnkey.  We'd love to know if anyone has advice on securing loans for this as we don't want to make it our primary residence for a year but would love not to have to put 25% down as our price point is 299k (since we really only have access to 30k liquid right now).  Any advice from the community?

Jeffrey Jones · Answer

Thanks Jules.  Many of these are close to major Universities and "outdoor" attractions.  Hoping to get the best of both worlds but definitely focusing on income producing properties.  As far as VA goes - this is the best market for STR in my cursory investigation.  My area - Va Beach is pretty STR prohibitive.  Eastern Shore is okay but seems to be rather saturated and out of my price point.  So it's our best option right now.  Appreciate your post.

Jules Aton · Answer

Nice. We rented a VRBO and got married in that area almost 25 years ago this month. In my limited but 1st hand experience it can be tricky to secure a desirable vacation home aka consumption item for your family vs a good STR. Not impossible but be sure to have realistic expectations and enough income to support if it isn't a great rental or you decide you don't want to rent it. Enjoy, it is a beautiful area.

Erwin Baquirin · Answer

Something else to consider would be the interest rate and the amortization rate. Depending on the financial institution you go with, if you were to receive a favorable LTV, you'd still need to consider what your interest rate and amortization rates are to get an accurate view of how much you'll need to cash flow to cover the loan and other expenses.

Jeffrey Jones · Answer

So thank you all for responding to this thread as I am new to BP and new to STR and getting back into real estate investing after 20 years of having no money lol.

Update seemed appropriate - looking in the Shannondoah region of VA as I am a VA resident and love to vacation in mountain STRs.  I have reached out to started to reach out to agents via Rabu and have taken the advice of many in these forums and am doing research on AirDNA.  I love the  Harrisonburg/Broadway VA area.  I know it's not FL or TX which seems to dominate BP forums, but I'm not interested in those areas.  Anyone have any experience in these markets and know a good agent who can help learn more about the market.  All I know is that the last three times I've rented an STR as a guest it has been in these areas and I'd love to own one for the income and the vacay potential.

Thanks all!

Kate Sanchez · Answer

@Jeffrey Jones  With $30k down, a 2nd home loan at 10% could work if you qualify, otherwise most STR loans need 20–25%. Run comps carefully - turnkey helps a lot. Good luck!

Arman Ahmed · Answer

@Jeffrey Jones

Hi Jeffrey, congrats on taking the first step! For turnkey STRs, the Midwest is a great place to start—properties are often under-valued, cash flow strong, and entry costs lower than many coastal markets. You might be able to find financing options with lower down payments if you structure it as an investment property through conventional or portfolio lenders, or even explore local bank programs. The key is targeting markets with proven STR demand and having a solid property manager lined up.

Vincent Jacobbi · Answer

Hi Jeffrey - could you make 15% down work (DSCR loan)? If so, let's connect.

Andrew Street · Answer

That’s exciting! Congrats on starting the journey. You’ll find a lot of creative financing options out there beyond the traditional 25% down, but it really comes down to finding the right lender and structuring it in a way that works for your goals. Connecting with a mortgage broker who understands STRs can make a big difference.

Min Zhang · Answer

That’s a good question, Jeffrey. Financing STRs without making them your primary can be a little tricky since most lenders see them as investment loans and want that 20–25% down. A few routes I’ve seen people take are DSCR loans (where the property’s projected income is used to qualify instead of your personal W-2s) or going with small local banks/credit unions that sometimes have more flexible terms. Another option is looking into creative financing if you find a seller open to it, though that’s rarer on turnkey places.

Have you already talked to a lender yet, or are you still exploring options to see what’s possible with your $30k?

Looking to Buy Our First STR - Advice on Investment Loans and Comps?

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