Financing rehab on "unicorn" STR's condos
Hi, this is my first post. Since we need a creative financing solution for our rehab I figured this is the best place to ask for help. The BP community is always so friendly, generous and helpful!
Following the BRRRR strategy, we're seeking financing for rehabs to our 2 'unicorn' short term rental properties we recently purchased just down the street from my other STR's. Previously, they were low-income rentals but in a prime vacation location on the Lake! Just need updating and adjustments to attract high rate STR guests in the 5 rental units.
When buying these we were initially approved by 3 mortgage co's for conventional mortgages, just to be later rejected because these are multifamily bldgs with land deeded to each bldg while also being within the grounds of the condo assoc. That's what makes them unicorns, so underwriters can't find comps to value it. So, we ended up purchasing one with cash but had time to find a portfolio mtg on the other one.
How do I "sell" us to a lender for the rehab loan? Is there a specific type of lender I should be looking for considering this type of property? So far those that I've spoken with weren't very encouraging. If all else fails, we'll be able to self-finance the rehab but that's not our first choice.
Any advice is very appreciated!
Christine