Financing Out of state, Short Term Rental in Florida

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Financing Out of state, Short Term Rental in Florida

Eric Schroeder
Loveland, CO · Member since 2016 · 17 posts · 6 votes

I live in Colorado and am looking at the west coast of Florida for STR property (Tampa to Sarasota region). I would like to finance it as a 2nd home/vacation property to use the 10% down. I would plan to stay in the property a couple of weeks out of the year and use it as a STR the rest of the time.
Are there restrictions to using this type of loan and hiring a property manager to turn over the property?  Or because it's a 2nd home loan, do I have to manage it myself?

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
Originally posted by @Jorge Vazquez:

There are no restrictions to this.

Actually, someone posted the Fannie guidelines for a second home loan the other day, and it constrained a “no hired property manager” restriction I believe.  Easy enough to google up. 

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    5y

    You’ll probably find you can’t give up control. Meaning use a property manager. And you won’t want to. 

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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 700 votes
    5y

    There are no restrictions to this.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y
    Originally posted by @Jorge Vazquez:

    There are no restrictions to this.

    Actually, someone posted the Fannie guidelines for a second home loan the other day, and it constrained a “no hired property manager” restriction I believe.  Easy enough to google up. 

    1Reply
  • Tyler Hall
    New to Real Estate · Pensacola, FL · Member since 2020 · 56 posts · 19 votes
    5y

    @Eric Schroeder I am happy you're posting about this because I didn't even know this was a financing option. What kind of loan would that be? I am active duty military and I wonder how the VA loan works with STRs and if it's even possible. Now you really got the wheels turning in my head. Good luck! I hear Ybor City is a major location for AirBNBs right now.

    0Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    5y

    Eric,

    There is no issue with using your second home loan for rental purposes, short term or long term. I would recommend looking in the South Tampa area near the Marina District, Midtown Tampa and Seminole/ Tampa Heights.

    Tampa recently beat out Miami for the top city… I might be biased but I would recommend Tampa over any city on the west coast.

    https://www.tampabay.com/news/tampa/2021/06/30/tampa-tops-miami-as-floridas-best-city-says-new-global-survey/#:~:text=The%20annual%20rankings%20pushed%20Tampa,Brady%20got%20a%20shout%2Dout.&text=It's%20official%3A%20Tampa%20is%20the%20best%20city%20in%20Florida.

    I help my investor and retail clients find properties in Tampa for AirBNB purposes consistently. As far as purchases, it has become my #1 request on secondary homes for my clients. I have a whole team from STR property management, to general contractors to a cheap lawn guy.

    In Hillsborough county (the county Tampa is in), you cannot do short term leases (under 30 days). However, within the city of Tampa limits you can Airbnb.

    I personally just finished BRRRing a quadplex in Tampa personally for my business partner and myself. We are all in for $525,000 for 4 units. We will gross about $17,000 - $22,000 per unit per year.

    Looking forward to connecting.

    Kristina Kuba

    Keller Williams Tampa Central

    1Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    5y
    Originally posted by @Tyler Hall:

    @Eric Schroeder I am happy you're posting about this because I didn't even know this was a financing option. What kind of loan would that be? I am active duty military and I wonder how the VA loan works with STRs and if it's even possible. Now you really got the wheels turning in my head. Good luck! I hear Ybor City is a major location for AirBNBs right now.

    At its heart, the VA loan program is designed to help veterans and military members afford a home they intend to use as their primary residence. As such, you can't use the program to buy an outright investment property, meaning one you plan to fix and flip right away or one you intend to rent out wholly 

    1Reply
  • Tyler Hall
    New to Real Estate · Pensacola, FL · Member since 2020 · 56 posts · 19 votes
    5y

    @Kristina Kuba That’s what I figured. I was wondering if there was a work around but it doesn’t seem like there is.

    0Reply
  • Ashley G.
    Rental Property Investor · IN · Member since 2021 · 11 posts · 7 votes
    5y

    @Tyler Hall You can definitely use your VA loan as an investment strategy, however you would first need to live in the property.

    For example you buy a duplex,triplex or fourplex using the VA loan. You live in one unit rent out the other 1/2/33. After a year or more you may be PCS'd to somewhere else. You then rent out all. The purpose of the VA loan is to give you a chance to get on the property ladder and use it as your primary home. It doesn't mean you have to just buy a Single family home.

    0Reply
  • Jessie Kristie
    Member since 2021 · 61 posts · 36 votes
    5y

    Does house hacking work with VA loans?

    0Reply
  • Carlos H DeOliveira
    RI · Member since 2019 · 64 posts · 48 votes
    5y

    @Eric Schroeder you can always get the loan, self manage for 30 days and then change your mind. It's not like they are going to recall the loan.

    Also keep in mind that you even with a 10% second home loan, you will most likely have to drop 30% down as almost all homes are selling above appraised value and you have to come up with the difference

    0Reply
  • Luke Rorech
    Real Estate Agent · Greater Tampa Bay · Member since 2017 · 392 posts · 290 votes
    5y

    @Eric Schroeder I've compiled a list of the rules and regulations for str in different municipalities in Pinellas County. Let me know if you'd like a copy. I have a few clients who has purchased str in Tampa and they're doing very well. 

    Also, self managing is the way to go. STR property managers will charge from 15-25% of revenue (gross not net). There are so many automation tools that self managing can be streamlined quite easily.

    1Reply
  • Tyler Hall
    New to Real Estate · Pensacola, FL · Member since 2020 · 56 posts · 19 votes
    5y

    @Ashley Goane thanks for the info. That's what I am doing now with my primary residency. I am doing a long term flip them I'm going to refinance out to a conventional loan and move to a new property and repeat. My real question was how many days do I need to actually live there. For example if I make a property my primary residence with the VA loan and then rented it out for half the month every month would be legal or not.

    0Reply
  • Eric Schroeder
    OP
    Loveland, CO · Member since 2016 · 17 posts · 6 votes
    5y
    Originally posted by @Luke Rorech:

    @Eric Schroeder I've compiled a list of the rules and regulations for str in different municipalities in Pinellas County. Let me know if you'd like a copy. I have a few clients who has purchased str in Tampa and they're doing very well. 

    Also, self managing is the way to go. STR property managers will charge from 15-25% of revenue (gross not net). There are so many automation tools that self managing can be streamlined quite easily.

    I'd love to get a copy of your STR regulations for Pinellas County. If you don't mind sharing that!

    Do you have any personal recommendations for automation tools that you like?

    Thanks! 

    0Reply
  • Jefferson Brown
    Investor · South Jordan, UT · Member since 2016 · 89 posts · 72 votes
    5y

    @Eric Schroeder 

    All In Credit Union has a program that has 0% down for investment properties.  We've bought two homes with them in Florida.  Its a 10 year balloon but has a 30 year amortization.  Try giving them a call.

    1Reply
  • Eric Schroeder
    OP
    Loveland, CO · Member since 2016 · 17 posts · 6 votes
    5y

    @Jefferson Brown thanks for the tip! Where did you end up buying in Florida?

    0Reply
    • Jefferson Brown
      Investor · South Jordan, UT · Member since 2016 · 89 posts · 72 votes
      5y
      Originally posted by @Eric Schroeder:

      @Jefferson Brown thanks for the tip! Where did you end up buying in Florida?

      @Eric Schroeder happy to help!  For the All In Credit Union loans we bought one in Destin and one near Orlando.  We currently have 3 in the Orlando area and 5 on the gulf coast.

      0Reply
  • Natalia Soares
    Salem, MA · Member since 2014 · 59 posts · 8 votes
    5y
    Originally posted by @Jefferson Brown:

    @Eric Schroeder 

    All In Credit Union has a program that has 0% down for investment properties.  We've bought two homes with them in Florida.  Its a 10 year balloon but has a 30 year amortization.  Try giving them a call.


    Hi Jefferson, Do you have a contact that you work with personally that you can share? Thank you!

    0Reply
    • Jefferson Brown
      Investor · South Jordan, UT · Member since 2016 · 89 posts · 72 votes
      5y
      Originally posted by @Natalia Soares:
      Originally posted by @Jefferson Brown:

      @Eric Schroeder 

      All In Credit Union has a program that has 0% down for investment properties.  We've bought two homes with them in Florida.  Its a 10 year balloon but has a 30 year amortization.  Try giving them a call.


      Hi Jefferson, Do you have a contact that you work with personally that you can share? Thank you!

      Looking back through my emails I find a Trina Causley but I can’t remember if she was the sales rep or the closer.  I tried to put her email in here but bigger pockets blocked it.  DM me if you want that.

      0Reply
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