Looking to get into STR's as a Canadian
New to Real Estate · Alberta, Canada · Member since 2025 · 1 post · 1 vote
Looking to get into STR's as a Canadian
5 Replies
- Lender · CA · Member since 2018 · 638 posts · 393 votes10mo
Nice to meet you Tyler, I will do my best to answer:
What lenders work best with Canadians, and what down payments or rate premiums should I expect as a foreign investor? - Many lenders have foreign national programs, we do a lot of foreign national loans especially in the Miami market. Be prepared for 30-35% down on the property for foreign national programs.
• Is it easier to finance as a Canadian using a DSCR loan, a foreign national loan, or personal income, and can projected STR income be used? - Foreign national loans come in a large array as you pointed out, DSCR is easiest, but often the more expensive option, it really comes down to your income and goals as an investor, but there are quite a few different options. For DSCR, yes STR projections can be used.
• What U.S. markets are best for remote owners who need stable STR regulations, strong year-round demand, and reliable property managers? - This would be investment questions for someone in the STR management space, I am probably not able to answer that. But there are a ton of people on here who will tell you all kinds of markets. Usually coastal towns and mountain towns do the best, I would try to find something that is available year round rather than seasonal for my first one.
• Are there any markets I should avoid right now due to instability, strict rules, or weak management options? - The rules and guidelines vary by city and county, so narrow down a couple markets and back track from there. I personally had one in PHX and it felt like that market got extremely saturated and was not great from a seasonality perspective, but could very well be investor error on my end. I do know that certain rural markets work well, but can be hard to find cleaners, contractors, and management due to lack of options, if you are going to be staying in Canada.
• What's the best ownership structure for a Canadian (personal name vs. U.S. LLC), and what tax obligations or withholding rules should I expect? A lot of this is going to come down to what is allowed by the lender based on which program you decide to go with. I would highly recommend working with a CPA that is familiar with both US and Canadian tax code to determine what makes most sense there.
• Are STRs still worthwhile after factoring in PM fees, insurance, repairs, and higher financing costs for foreign investors? - They definitely can be if you buy right, buy in a good market, and put in the extra work and effort to make the listing really stand out. Good management and cleaning is certainly the most important part of that.
Hope this helps!
- 10moAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
That was a great answer by Clayton - I have seen 30% down in the past (a few years ago and lending rates and practices change often). Let me know if you are interested at all in the Tampa market, you can still cashflow at a reasonable rate here 10-20% CoC returns fairly common. You just need the right location and property.
Vacation Rentals of Florida53 Reviews - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes10molots of Canadians invest in the Phoenix/Scottsdale market. I would avoid Washington State, Oregon and California. Check with your Chartered Account about using LLC, you might be double taxed. You can buy without using a lender by using Creative Finance. Bring some
Quote from @Tyler Wong:
Hey everyone,
I’m a Canadian resident looking to buy my first short-term rental in the U.S. I’m hoping to learn from people who have done this before — mainly around financing, taxes, and choosing the right market since I’ll be managing everything from Canada.
What lenders work best with Canadians, and what down payments or rate premiums should I expect as a foreign investor?
• Is it easier to finance as a Canadian using a DSCR loan, a foreign national loan, or personal income, and can projected STR income be used?
• What U.S. markets are best for remote owners who need stable STR regulations, strong year-round demand, and reliable property managers?
• Are there any markets I should avoid right now due to instability, strict rules, or weak management options?
• What's the best ownership structure for a Canadian (personal name vs. U.S. LLC), and what tax obligations or withholding rules should I expect?
• Are STRs still worthwhile after factoring in PM fees, insurance, repairs, and higher financing costs for foreign investors?
Thanks in advance — any experience or guidance helps a ton.
Mackintosh's and let's talk. - Interior Decorator · Member since 2025 · 82 posts · 42 votes10mo
I just worked with a CA company that is leasing a new townhome complex (Lucy Lane) being built in Nashville. I believe he is leasing 3 or 4 units. Each unit is designed differently. I designed one that is purely focused on the bachelorette scene.
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