All Forum Posts by: Lyndsay Zwirlein

Condotels are tough to finance, more challenging than regular condos. Make sure you find a lender who can do them!! I can make recommendations. Sometimes they require more $$ down or have other requirements. 

From management perspective, I agree with you! we personally owned a condo as str and it was easier to manage than our SFHs! There are pros/cons to both!

Quote from @Stuart Penman:

We are planning to purchase our first str to list on AirBNB in NC. We want to finance it with a Vacation (aka second home) mortgage with 10% down and better rates. It's common, but we found many lenders don't know about it or might say they can do it but haven't done so before.  We are looking for a lender who has experience with this so they don't get shifty on us during underwriting.  We meet the rules for location, intent to occupy it personally for a part of the time, etc.  Any lenders based in NC or that lend in NC would be best. 

Side note - we also plan to do the downpayment and renovation via a HELOC, bonus points if anyone knows of an NC lender that does both.

Thank you

Hey Stuart! I am closing a vacation home loan in Marshall, NC on Tuesday for a client :) I am a loan originator licensed in NC and specialize in second homes, investment homes and STR. I own several strs myself. Happy to help answer questions and/or provide a prequalification. Let me know how I can help!

Quote from @Stephen Ryan:

Does anyone know where you can get a loan for an Airbnb if you haven’t filed your taxes?

Hey Stephen! What caused them not to be filed? Was it due to an extension or something different? 

If it's due to an extension, that is no issue for conventional financing. Which you can use for a short term rental. 

Like others mentioned, a DSCR can be an option because it doesn't require tax returns for underwriting. However terms are typically better on conventional loans so I recommend people exhaust that option first before going DSCR.

Quote from @Matt Osojnicki:

Hey BP family!

My wife and I are traveling to the great state of Florida next week from September 15th tot he 20th. Specifically Pensacola from September 15ht-18th then Destin from September 18th-20th. Our goal is to meet with some of the local PM's, Realtors, Contractors, Handy Man, or just anyone who wants to talk REI! We lived there for 2 years and are excited to be returning as investors in the STR industry. Our goal is to locate the team and properties we will be working with in the coming months. We will also be putting together a pitch deck for other investors who wish to do the same thing with us.

If anyone knows someone we should be talking to or just has some general advice we would greatly appreciate it! 

Thanks in advance for everyone's time!

Matt & Kyli

In beach markets, make sure you know the property type and what loans are available. Condos are quickly all becoming unwarrantable, so loan options are still available but change! Same with condotels. Townhomes are great because they are viewed as SFH. SFHs you have lots of options w/ conventional, bank statement, DSCR, etc. I recommend speaking with a lender beforehand too!! Have a great trip!!!

Hey Trinh! A DSCR loan is really common with this scenario. Every lender gas different requirements/guidelines but there is a minimum FICO, you will have to provide a personal guarantee, the property will have to cash flow. Rates vary based on your down payment and FICO. We are seeing low 7s to low 8s.

Also you can purchase a second home if you do not own your primary. 

Quote from @Kyle Crane:

Looking to purchase our first property, but unsure how to classify it. I am intrigued by the idea of only having to put 10% down for a "second home"  and having more cash in hand for some upgrades etc, but are the tax benefits more advantageous on an "investment property". I did my research and I understand there are stipulations and different tax implications to both, but can someone put those tax differences into perspective for me? Did you classify one of your properties one way but wish you'd classified it the other? Trying to figure out which route to go. Thanks!

Hey Kyle! I know you're asking about a tax perspective but from a lender perspective, the primary intention for usage should factor into the loan type.  Lenders have been cracking down on occupancy recently and you have to sign an FBI Occupancy Cert at closing.

10% down vacation home loans work if you intend to use the property as a vacation home at least a couple weeks out of the year. If you are purchasing strictly for an investment, it would be best to pursue an investment home loan. This is a conventional, max 85% LTV (non-jumbo). Hope this helps!

Congrats on the flip!! For STR buy & hold, there are tons of financing options!! conventional, bank statement, DSCR (debt service coverage ratio). I'd call around and ask about different programs to find something that's the right fit for you given your income and assets for down payment.

Great Q!! Following! I'm curious about the Austin market too. Were considering STR.

Get 3-4 quotes from different carriers for the same property and it should become apparent if it's reasonable.