Starting out with STR

3 Replies

I currently live in a SFH in Orlando that is approx 2-6 miles from major theme parks. I have to relocate and want to keep this home for STR. I'm eligible for refi on this property but i have to secure a 2nd loan for a home in my new city. Not sure on the order of operation- should i purchase new home 1st then refi or refi now? Ideally I would love to do it all at once. It will take a month or so to get the property STR -ready. Thanks in advance...

I would get your new home first but also ask about doing them at the same time if they will let you. That way it would be one credit inquiry.

Ensure that you can do short term rentals in your municipality. 

I agree with @John Underwood on asking the lender you choose to do both properties at the same time.  When you are rate-shopping, you can offer your self-pulled credit report (as you might get at MyFico) so they can give you an idea of rates, but don't let them pull your credit until you decide which lender to use.

If you are able to reduce your payment with the refi, it would be beneficial to do that first. Then you would be better qualified for the purchase. If you are pulling equity out, I would do it after.