Short Term Rental Financing

[Kayse Malak]

Hello! 

My name is Kayse and I am a fairly new real estate investor. I have 4 long term rentals and 1 short term rental. The short term rental is very successful. I was able to purchase and finance all of these properties on my income alone (active duty military) and used the profits from a sale of the first home I ever purchased for the down payments. I want to buy a second property to use as a short term rental around the same area as my first one, New Buffalo MI. I'm having trouble figuring out how to finance this. If I were to buy it as an investment I would have to put down 20-25% of the property which would pretty much use up the rest of my cash. On top of that, most lenders I've talked too do not recognize short term rentals as investments. I am looking into hard money lenders but I have never gone that route before. I am just looking for some advice or suggestions on receiving financing for a second short term rental. Thank you in advance!

[Jessica Tsao]

@Kayse Malak

Hard money lenders can most likely help with a purchase and a option if you need to do a cash out refi on property you have, DSCR Purchase or Cash out REFI can go Up to 80% of the purchase price or 80% of appraised value, 30 year fixed Rate are as low as 4.25% and they can close in 3 weeks. It's gonna be higher than conventional loans, but the benefits of hard money lending is they don't look at your DTI, they only look at the income that the property produces. It can also go into a LLC so no need to be on your own credit report. Hope this helps