Re finance option on STR in SC

[Eric Kelly]

I am looking to re-fi my STR that is in Mrytle beak SC. I went through a process with a broker and the HOA that I currently have the broker is telling me classifies as a condole so it is limiting me to take the money out of the house. I currently have about 91k in equity that I want to take out but from the condole classification I am having trouble getting another conventional loan do to the re fi. Is there any ways around that ?

[Andrew Garcia]

Hi @Eric Kelly, as a lender, I can say that there are two things that might cause an issue here.

1. It is a condotel so it is non-warrantable for conventional financing. There is unfortunately no way around this. You will need to use an alternative financing method.

2. It is a short-term rental. Many lenders will not lend against STRs because they are afraid of it getting shut down by the government in the future.

However, I do not want to just lay out the problems, there is a solution.

I have an investor that will lend on both of these. They would need to see 12 months of STR income from a condotel management company, AirBnB, Vrbo, a property management company, etc. The LTV would be 70% on this. You can do the math to see if it makes sense for you. If you want to leverage the equity, feel free to reach out.