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Updated almost 4 years ago on . Most recent reply
#2 Short-Term & Vacation Rental Discussions Contributor
- Property Manager
- Gatlinburg, TN
- 3,239
- Votes |
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Question for the STR finance gurus
#2 Short-Term & Vacation Rental Discussions Contributor
- Property Manager
- Gatlinburg, TN
So I had the opportunity to buy a cabin near Gatlinburg in January at a great price. I paid cash. It produces about $36K a year. Well I had an opportunity to buy yet another cabin nearby and I closed on it today, again with cash.
The only problem is, I'M BROKE NOW! ;)
I'd like to take out a mortgage on one of the properties and take a chunk of cash out. But I have now 6 rental cabins. Don't mortgage underwriters want you to have substantial cash reserves to fund expenses for all of your rentals? Does anyone know what that number is? What if I don't have it because I've written checks for two cabins in the last 4 months?
Any suggestions?
- Collin Hays
- [email protected]
- 806-672-7102
Most Popular Reply
#1 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
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#1 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
@Collin H.
The substantial reserves is for a purchase. If you’re refinancing you will have the proceeds of the new loan to use for the required reserves.
- Don Konipol
