STR -bridge loan planning for conventional or longer-term financing in 12-24 months

[Jennifer Frame]

We are an owner/builder, duo. Just completed a SFH. Great area, great credit, experienced landlords and builders. Build was completed for about 50% of the appraised value. Used cash plus construction loan. The problem we are having is that we will be holding the property and using for a STR. Right now, due to costs out for the build, DTI is a bit too high plus we are the builders, so can't use appraised value (direct cost only) for conventional loan and LTR appraisal doesn't support the 1.0 or 1.15 ratios for DSCR (rate and term vs cash out) - BUT, the STR market does... however, lenders don't use those until 1 full year reported on the tax return. Frustrating. Working with hard money lender now to close the deal, but I'm concerned about only having 12-15 month terms due to the above referenced. Basically going through the hoops of a bridge loan to ultimately get to conventional loan. That said, I have shopped around A LOT and of all the resources, local HML has been by far the best option for the interim. We are trying to position ourselves for the next step to be as "seamless" as possible. The difficulty seems to be coming largely from 1) it being an investment property, 2) us being the builders, and (probably most importantly) 3) this will be a short term rental. 

Anyone have any insight?  

[Zach Edelman]

You need to find a lender that can qualify the DSCR loan based off Air DNA projections. Certain lenders in the DSCR space, can underwrite the DSCR ratio using Air DNA income, in instances where there is a justifiable narrative for there not being existing STR income history. In your case, since the property was just built, that would fit the bill.