Financial Advisor · Houston, TX · Member since 2015 · 58 posts · 25 votes
Do any of you know of any loan products or portfolio lenders that cater to the vacation rental market (long term refinance)? I'm aware of FirstKey, B2R Finance/Dwell Finance, and Lima One. However, they specific exclude vacation rentals and short term leasing.
I currently own 2 properties in the Chicago land area I gross $50k/each property yearly. My long term goal is to own 25, with an aggressive goal of 10 (8 more) by the end of 2016.
I'd like to hear some success stories on how you expanded, acquired more properties, and financed them. Any assistance would be greatly appreciated.
Rental Property Investor · Saratoga Springs, NY · Member since 2014 · 122 posts · 101 votes
10y
We have 5 VR's, 3 are financed with conventional investment loans. Not sure we would be granted another given the crazy loan requirements, and it was so stressful each time don't want to go through that again.
We have talked to one of our lenders, the local bank, about a portfolio loan. Their rates are higher than the "bigger" banks, but they get what we do, are familiar with the area we do it in, and have offered us quick and guaranteed approval for our next deal or two as a portfolio loan. So - try local.
However, that restricts us to the same area we are already in, we would like to expand (heading south next).
Financial Advisor · Houston, TX · Member since 2015 · 58 posts · 25 votes
10y
@Maura Paler, that is an excellent idea. I've explored that option before a while back before I actually got into this business. I'm not sure why that idea escaped me (duh!). This is one of the reason I love Bigger Pockets.
Great input. Thank you. Let's stay connected. We may be able to bounce ideas off one another.
Financial Advisor · Houston, TX · Member since 2015 · 58 posts · 25 votes
10y
There's a credit union called Navy Federal, the will do invest properties and general business loans. Locally there's one call Credit Union 1, I believe they will give you 70% Loan to Value. I believe there is a max of 5 properties though. I'll look into this again.
Financial Advisor · Houston, TX · Member since 2015 · 58 posts · 25 votes
10y
@Adam Farag, one property I've owned for 4.5 years. The 2nd property is a recent acquisition. Just closed in December 14, 2015. Rehab is about a week from completion. Should be listed by Feb 1st.
Length of stays vary. Minimum 3 nights. I've had guests that have stayed as long as 3 months.