When to refinance an STR

[Louis Louisius]

Hello, 

I purchased an STR for my first investment property for $725k and 20% down = $160kish after taxes at closing

cosmetic fixes, repairs and and new appliances plus furniture $70K(I think this killed me a bit)

house valuation after closing was $750K

currently all in $230K

after monthly avg income I take home ~1,500k/month

current comps in the area are $850k and up

when can I refinance my str to get my money out so I can do a new/better deal. do I have to wait a full year to refinance or can I do it now

[Zach Edelman]

I know for a fact using DSCR loans you can do a cash-out refinance with as little as three months seasoning. To echo a point made above, an optimal LTV structure for a lender for short-seasoned cash-outs is as follows:

3-6 Months: 70% LTV

6+ Months: 75% LTV

What's also important to note is that because you don't have a year of STR history to qualify the loan, assuming you go the DSCR route, you'll also want to go with a lender that can underwrite with Air DNA projections, even on a short-seasoned cash-out!