Short term rental refinancing

Miami, Florida
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Short term rental refinancing

Alexei Semenov
New to Real Estate · Miami, FL · Member since 2020 · 30 posts · 14 votes

Hi !

I have a question…

Can you refinance Short Term property and get the Cash out?

Bought it as a long term rental then converted to STR….

My lender said it’s impossible and I’m stuck for a long game….

Thank you all!🙏

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
4y
Quote from @Alexei Semenov:

Hi !

I have a question…

Can you refinance Short Term property and get the Cash out?

Bought it as a long term rental then converted to STR….

My lender said it’s impossible and I’m stuck for a long game….

Thank you all!🙏


Not at all - a lot of DSCR lenders will do this refinance no problem, even as a short term rental. How long have you been operating the property as a short term rental?

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  • Phillip Vaughan
    Investor · Cathedral City, CA · Member since 2017 · 76 posts · 25 votes
    4y

    You should be able to. It is done all the time. I would ask your lender specifically why they feel it is impossible. Or rather, under what conditions could you MAKE it possible!

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4y
    Quote from @Alexei Semenov:

    Hi !

    I have a question…

    Can you refinance Short Term property and get the Cash out?

    Bought it as a long term rental then converted to STR….

    My lender said it’s impossible and I’m stuck for a long game….

    Thank you all!🙏


    Not at all - a lot of DSCR lenders will do this refinance no problem, even as a short term rental. How long have you been operating the property as a short term rental?

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    2Reply
  • Miranda Holland
    Lender · Macon, GA · Member since 2015 · 191 posts · 59 votes
    4y

    Sounds to me like your lender was very arrogant and saying that. There's so many other lenders and they all vary in their lending criteria. If you're going through a traditional bank or credit union, you might want to look at some private lending companies

    0Reply
  • Joshua MessingerBusiness Member
    Property Manager · Poconos, PA · Member since 2020 · 443 posts · 264 votes
    4y

    Hey @Alexei Semenov! 

    I have heard of ways to be able to refinance after you have 2 years of rental income proving income has been made. Given your situation now I would start searching for another lender that may want to accommodate your situation. 

    Hope this helps! Don't hesitate to reach out if you ever need anything! 

    All the best,

    Josh 

    [email protected]484-986-5012
    0Reply
  • Alexei Semenov
    OP
    New to Real Estate · Miami, FL · Member since 2020 · 30 posts · 14 votes
    4y

    Thank you all for the information and thoughts!

    I think I need to find a private lender to do that….

    0Reply
  • Justin BeasleyPro Member
    Pigeon Forge, TN · Member since 2020 · 102 posts · 69 votes
    4y

    You absolutely can refinance it. If you want to use the income produced by the property then you will need to have 1 or 2 tax returns(depending on the lender) showing the income. Find a different lender.

    [email protected]
    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4y
    Quote from @Justin Beasley:

    You absolutely can refinance it. If you want to use the income produced by the property then you will need to have 1 or 2 tax returns(depending on the lender) showing the income. Find a different lender.


     ??

    You do not need to use a lender that requires tax returns to use the income to qualify

    [email protected]
    Harpoon Capital514 Reviews
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    1Reply
  • Ecaterina Katerina Morosan
    Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
    4y

    You absolutely can! I'll send you a great investor-friendly contact shortly. 

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Alexei Semenov There are several different types of commercial products out there for what you're looking to do.  Your lender is either a direct lender with a small credit box to work within or a mortgage broker who doesn't deal with many investors and primarily home owners.  

    As long as your STR rents allow you to debt cover you should be able to cash out as high as 75% LTV into a 30 year product without any personal income requirements. (no tax returns or DTI).

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
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    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    4y

    @Alexei Semenov Why are you trying to cash-out refi? You mentioned you bought at LTR? Did you buy it with a loan? What rate do you have on the loan?

    You can certainly do a cash-out refi on a STR. But just because you can do it, doesn't mean you should. It comes down to what are you trying to accomplish, what is your current scenario and what will it be after the refi, and are they other options to get to your goal.

    Hope this helps.

    [email protected]571-200-6180
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    13h

    Hey Alexei

    Yes you may finance an STR with a DSCR Cash Out loan. You may pull up to 80% LTV as long as you have the experience and the property qualifies.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    0Reply
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