Seeking Lender Advice to Refi 2 Properties and Buy 3rd

[Scott Dalziel]

I have 2 STRs I purchased under conventional loans in my personal name. The current LTVs I estimate based on sales comps are at 59% & 66%. I'd like to refi into those loans into an LLC and use that capital to acquire an additional property. The lending market has been changing quite rapidly. Does anyone have a recommendation for lenders that are doing 80% LTV cash-out refi on STRs?

[Riaz Gillani]

It's pretty unlikely to find 80% LTV on a Cash-Out for an STR. It's tough even for a long-term rental. But not impossible I'm sure. Is 75% LTV an option?

Also do the STR's have income history? Many lenders are requiring 12mo of uninterrupted history - aka no gaps in reservations that may suggest the house is being us a vacation or second home. For experienced borrowers (at least 2 actively listed STR's with 18 or so combined months of income history), the required history for the subject property may be reduced to as little as 6 months.

You are correct that the lending market has changed rapidly. It's narrowed its buy boxes by a good margin and unfortunately that means less loans that are a guaranteed go. STR, Ground-Up Construction, MF 5+ and even 1-4 in select states require a more deliberate processing / underwriting.