All Forum Posts by: Robin Simon

Are "Medium Term Rentals" (1-2 month stays) the next big thing? I tend to think so as owners can trade max profits for lower costs, booking certainty & perhaps most importantly much lower regulation risk (most STR regs don't apply for 30+ day stays)

Very interest recent report from Airbnb - https://t.co/EPvz235Uyz

Highlights:

Interesting list of the top cities for these MTRs:
(Best Earning - some nice sleeper markets)
La Quinta, California
Delray Beach, Florida
Marco Island, Florida
Palm Springs, California
Indio, California


("Best Equipped" i.e. most listings - oversaturated or sign of a good market for MTR with robust demand??)
Irvine, California
Los Angeles, California
Cincinnati, Ohio
Cambridge, Massachusetts
Seattle, Washington

Most "hospitable" (most enjoyable cities for people doing "digital nomads" by working remotely in short spurts - also some good markets to consider
Bend, Oregon (93.7%)
Santa Fe, New Mexico (91.7%)
Boulder, Colorado (91%)
Key West, Florida (90.2%)
Fresno, California (90%)


What do you guys think?  Anyone switch from STRs to MTRs (30day+)

I can recommend several:

Brett Koster 

https://www.kosterkingdom.com/

Erika Albert

https://www.realtor.com/reales...

Brooke Roeder

Can't speak for other lenders but the DSCR loan product is likely what would work best for your situation

A lot of the more conservative shops will require you to use your basis (purchase price plus documented improvements) as the value and limit you to 70% or so of that.  However, some lenders will stretch a little more and use an appraised value (which takes into account the greater value increase than sum of parts) but make you wait 6 months typically and have other requirements such as a minimum FICO.  Lowest available time frame I generally see is being able to cash out in 3 months

Yes, all DSCR loans require full recourse guaranty, typically for anyone who owns 25% or more of the entity (if using an LLC as the borrowing entity for example)

 Depends on a lot of factors - 

Conventional or non-qm (DSCR)?

Credit score dramatically changes things as well

I would look for standard single family homes (anything multi unit or unique makes comps tougher) that can be backed up with strong recent sales comps and low net adjustments on an appraisal. Every lender is different, but generally we are OK with more rural properties that are SFR, not too too rural, and have an appraisal with three recent comps that are A) less than five miles away B) sold somewhat recently, last few months and C) net adjustments less than 20%, preferably less than 10%. Its also best if its cash flowing (DSCR >1) and in a decent sweet spot of value (not too small nor too big, I'd aim for properties worth somewhere between $250k - $450k for rural)

 Its definitely become a "case by case" type situation for lenders on rural properties in the current environment, if you have a really strong deal exceptions are always there to be made

congratulations, you are well ahead of the game

Thank you - I only do DSCR loans so don't really know the answers to your conventional/DTI questions but I am sure someone here can jump in and help

The limit should only apply to the number of agency loans you have and wouldn't count any commercial loans you have I believe