How fast to expand? DSCR or conventional

[Rosalie Evans]

I am in the process of buying my first short term rental. I am under contract with a closing date in the first week in May. My mid score on Fico 2 is 723. I do have some crappy student debt but I am working on addressing that. My question is would I be crazy to start looking into a second short term rental and get a DSCR loan or should I wait 12 months and do another conventional? I have been studying up on the STR industry for 2 years and I am to the point that I am comfortable making a move but I do not want to be to aggressive and somehow burn myself with that. Any advice for a semi newbie?

[Landon Bleau]

As long as the numbers make sense and you're still hitting your goals for CoC return for the STR, I would definitely use the DSCR loan. Yes a conventional loan likely has a better rate and terms, but as long as the deal still makes sense using DSCR loan, go for it.

[Keyven Hernandez]

Like Landon said, as long as it makes sense you should do it. Dscr loans are great for scaling. But I would set up your first Airbnb, maybe for a month or 2 and make sure you actually like hosting. Most people believe its hands off, which it can be if you put the right systems in place, but it does require work. Good Luck and congrats!