Carefully analyze if the potential rental income can support that level of financing costs and operating expenses.Get realistic projections on expected occupancy rates, average nightly rates, operating costs etc. from experienced short-term rental operators in that market.Calculate the debt service coverage ratio (DSCR) lenders will require based on the projected net operating income.

It is a 4bed 3bath 3200sqft $1.2m custom homeBenefits- no HOA or rules restricting STR -1mile (walkable) from historic downtown or from the Rock park-house has nice views and is pretty secluded from neighbors and feels private-assumable loan with much lower than market paymentDraw backs- high price -no comps, new house in older neighborhood.

Figure out what kind/price property you want to to look at then ask a local lender who to make that work.

As for selling with 10% down at 8% interest, you now have two title transfers that violate the due on sale clause and add complications to subject to “safeguards” that reduce risk if note is accelerated, if party in possession doesn’t pay taxes or insurance, and of triggering whatever system the lender has set up to notify them when a deed transfer takes place. 

It will be difficult but not impossible to find a lender that will take second position and very likely the first lien holder will be apprehensive to a subordination agreement..The terms will not be as favorable likely in the 7-8%'s I/O but on a new mortgage there are investors that theoretically can finance 'unlimited' units..I think with our team it's 250+ up to $100M.

With the new public and private investments in and around downtown our view is that Springfield has a lot of upside potential.Hope this helps!

As a commercial lender the rates are lower on cash flowing properties. 

It's important because it affects how much money we can borrow from lenders.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Looking for lenders that do cash out refis immediately or 90 days max.