All Forum Posts by: Lyndsay Zwirlein

Check with the lender. Some have "due on sale clause" language in the documents you sign. 

Like the others mentioned, we got an umbrella policy on ours!

Peter Stewart is a great agent in Indy. He owns several STRs. 

Following!! I've looked into this area as well, so curious everyone's experiences!

On a DSCR, the lender could use a 1007 aka the appraiser's opinion of gross rental income in the market.

Agree with Eric. A conventional loan will have more competitive rates/terms but it requires a 2 year income history. If you want to bypass that, a DSCR loan is a great option. It doesn't look at your personal income or DTI (debt to income).

Highly recommend David Greene's book "Long Distance RE Investing". Just read it this summer and it's got great processes for in and out of state investing. We currently have out of state properties in 2 different markets and use them as STRs. A lot can be automated, use smart technology, but having a great boots on the ground partner is a must! For us it's our cleaner and handyman. Good luck!

@Dale K Poyser love that advice!!!!! yes! 

@Steph Prince we have a couple STRs and I am starting to focus a lot more on decor/furnishings.  I am not a designer, so I have hired people to help put finishing touches on our properties. It is getting really competitive in some markets, so in my opinion your pictures have to stand out.  Also "Optimize your Airbnb" by Daniel Rusteen gives great ideas (it applies to other sites like VRBO, direct sites, etc). Focus on what sticks out about your property and market that -- waterfront view, amenities you provide that your neighbors don't. You can find this by searching the other listings in your area.  Also after we start getting reviews from guests, I start looking for common themes about what they loved about the property and add that to the forefront of my listing.  Professional pics are a must.  Hope this helps! 

Hey Tracy!! I’ll send you a pm but I’d be very interested in connecting with your lender! My fiancé and I are in a similar situation. We live in Cleveland. Thanks so much for sharing your experience!!

Awesome!! Yea the bank statement program is great for self employed individuals. I'll shoot you a PM. I work for a broker and we have over 50 wholesale lenders so we have lots of legit programs for both DSCR and bank statement.

Hey Chris! Agree with Leslie. I recommend a DSCR loan or a bank statement loan, which is specifically for self employed individuals. For DSCR, the underwriting process is usually a lot easier than a conventional loan! Most lenders require:

- 80-85% LTV

- FICO is important. Everyone has different requirements, but typically 680 is the floor. The higher your FICO, the better your rate.

- Debt service coverage ratio is underwritten by gross rental income divided by your mortgage payment aka PITIA (principal, interest, taxes, insurance, and association due if applicable).  Again everyone has different guidelines but the ratio typically has to be > 1.0 or 1.15x.  Some lenders even have "no ratio" products. 

Hope this helps!! Good luck and congrats on the success with your current one!!!