(Re)Financing a New Vacation Rental

[Paul Smythe]

My group has completed a flip, but while in the process of getting it ready to sell we looked into holding it as a vacation rental. After running some tests and seeing the expected returns we decided to go that route. We already have a solid calendar of bookings that is filling up quickly. The issue we are running into now is finding financing so we can refi and pay off our hard money loan.

Our go-to hard money lender is not interesting in vacation rentals. We know Visio does it, but they have pretty high interest rates. Are there any other options out there for us? The very conservative DSCR is around 2.00, so there has to be someone willing to lend on it.

[Jon Crosby]

@Paul Smythe  You should be able to find plenty of conventional financing options for VR's without requiring much if any rental underwriting I would think.  You will pay a slight rate premium since it's not a primary residence, but shouldn't be more than 5 - 5.5% if you have good credit.  Try Finance of America to start as that is who I am currently using.  Good luck to you!