All Forum Posts by: Ryan F.

I am considering joining this program. I am curious if it is associated with bigger pockets? I figured the term would be exclusively licensed but I may be mistaken. 

Anyone have any feedback on the program? Is the bang worth the buck ? 

Hi Ryan, 

For a purchase or refinance of a short term rental, any STR lender is going to look at EITHER the gross income received in the last 12 months (trailing 12 month income statement) OR the AirDNA income projections.

In this scenario, it certainly seems like it would make sense to take the $40k/yr and double it since it was only used 50% of the time, but that is just not how any underwriter will look at it. STR's can be highly seasonal, and depending on when this property was primarily rented, it can drastically effect the projected out yearly income.

So my recommendation would be to check the DSCR based on the trailing 12 and the AirDNA separately. There is certainly a case to be made to underwriting to use AirDNA if it is higher than the tailing 12, given the limited availability of this STR based on owner use.

Hey Ryan,

Intuitive question - my primary focus as a broker is Non-QM, DCSR, LTR/STR so this is right up my alley. For a short term rental revenue, the lender will absolutely take T12 statement that shows gross revenue of a property. Of course they would understand that in the current situation if owners occupying it for six months out of the year, it would only make sense that that revenue would double if it were to be a full-time STR. Typically, what underwriters do for short term rentals is use AIRDNA to score of the property based on reasonable comps and factors - this helps establish income as well.

Another thing to keep in mind is that if you're trying to run your own numbers for the DSCR most lenders will use a 20%-25% expense factor for STR's because of the frequency of 3rd party services associated with running the business. Unless you can prove you will be cleaning, listing, etc, maintaining the property yourself.

Happy to connect and help you answer any other questions!

I wouldn't discount the idea of MTR or even student housing if you can find it close to USF downtown. It really will open up your options due to the restrictions there. I used to live there and it's incredible!

@Jason Edward Watts I can second Cape Coral! This is one of the last areas in Florida where you can still buy waterfront property for half a million, and this significantly affects your bottom line and income potential

Hey Ryan! A new client of mine just got a 4/2 pool house in Pinellas Park that needs about $30k in cosmetics for $385k and income projections between 70-80k. STR's in Pinellas have declined in 2023 from 2020-2022 due to the COVID boom the area experienced. The market here is still strong and there are still great opportunities. I own a PM company with 80+ units as well as am a licensed broker working exclusively with STR investors. Let me know if I can be of any assistance!

Curious how the STR in Pinellas are doing? Looking to possibly add a condo near the water in St Pete. Seems most have 30 day minimums though.

Are you doing any plumbing, electrical or structural work?

If not, check and see if you need a permit.

In my area I would not need a permit for this.