Best financing products for short to mid term rental

[Justin Bettano]

Evening, 

I am in the process of acquiring a short to mid term rental in the somewhat local vacation/ tourist destinations in my region. I want to utilize either a 2nd home type product or investment property product. I was reading about DSCR loans and they seem like a great tool for cash flowing properties.

My ultimate question is does anyone know if there is a property criteria for these products? Can it be a single condo or apartment. 

Anything helps BP community, thanks ! 

Best, 

Justin 

[Robin Simon]

Quote from @Justin Bettano:

Evening, 

I am in the process of acquiring a short to mid term rental in the somewhat local vacation/ tourist destinations in my region. I want to utilize either a 2nd home type product or investment property product. I was reading about DSCR loans and they seem like a great tool for cash flowing properties.

My ultimate question is does anyone know if there is a property criteria for these products? Can it be a single condo or apartment. 

Anything helps BP community, thanks ! 

Best, 

Justin 

Hi Justin - as you've noted - DSCR Loans are typically the best bet for this (Mid Term Rentals) and typically are for these newer/innovative strategies as DSCR Loans are typically done by private lenders that can move and adapt fast (versus slower moving lenders that must follow GSE guidance or banks that are under a lot of regulation and bureaucracy)

Check out this article published at the end of last year here on BP that talked about "whats coming next for DSCR Loans in 2024" - Medium Term Rental financing solutions was one of the main topics!

What’s Next For DSCR Loans? Updates For 2024 and Beyond

https://www.biggerpockets.com/blog/what-is-coming-in-2024-fo...