Market Fluctuations – What if appreciation stalls, or rates rise, impacting your refi strategy?

We are also seeing an increase due to the lower interest rate debt out there in a higher interest rate environment. 

If the floating rate debt starts costing too much and there is no capital to replace a rate cap, reserves run out.  

Credit score and loan size can also affect what rate you may find. 

Our cash on cash return is essentially infinite as we make money on the delta between the yield of the discounted note that we purchase and the interest rate we pay to our passive private capital partners. 

A great lake front home doesn't have to cost a mint but it sounds like you want something that is really fantastic which will bring a higher nightly rate.

Raising your credit score will get you far better rates personally as well as with private lenders for your LLC. 

AirDNA shows it on the rise in terms of annual revenue, occupancy rate, average daily rate and revpar, with about 3,000 total listings.

And also that rates are just going to continue to be an issue, so it's likely something to plan for in rent rates and/or overall investment costs. 

Also lots of sellers have locked in <4% rates and don't want to buy at 7% new investors who dont have low rates will just deal with the new normal or historic rates.