Best Loans for STR Investment Properties
Looking to purchase your first investment property and don’t know where to start? Understanding the type of loans you can obtain for a STR investment property is crucial to beginning this journey.
Real Estate and all that it entails can be overwhelming, trust me, I get it! After being in the industry for several years now, I feel like I am finally starting to have a grasp on it all! For me, obtaining the actual loan was the most complicating - having to wrap my head around this concept - part. But I can now say that I understand it well enough to explain it to all you newbie investors, thanks to a few deals, podcasts like Bigger Pocket Real Estate Rookie and Real Estate Disruptors and of course my fantastic lender Grace ;)
In my journey, I’ve learned that several investment property loans exist and you must choose the one that aligns with your specific investment goals and current market conditions. Below is a list from AirDNA of the best loan types for investment properties, whether you're new to the rental market or looking to expand your portfolio.
DSCR (Debt Service Coverage Ratio)
Measures a properties ability to generate enough cash flow to exceed its debt.
Property qualifies for the loan, rather than the individual.
Key factors: detailed analysis of rental income and expenses, very little local STR regulations and favor those with property management expertise.
Conventional
Borrower needs financial stability ~ minimum credit score of 620+
Not all lenders will cover this type of loan
Min down payment of 20% to avoid additional PMI payment
Hard Money
Typically used to finance one property while preparing to sell another.
Funded by private investors or companies vs traditional banks.
Fast funding process, which yields to quick access to capital.
Key factors: high interest rates and closing costs, short repayment period (usually 6 to 24mos)
FHA (Federal Housing Administration)
Typically designed for primary residence purchases, but can be used for house hacking
House hacking = works for multi-family properties where owner can live in one unit and rent out the other
Investors must occupy the property within 60 days of closing and live there for at least one year before renting it out
Best for: first time investors with lower credit score and down payment
HELOC (Home Equity Line of Credit)
Financial tool that allows investors to borrow equity from one property to pay for another
Line of Credit given and can be drawn from as needed
Key factors: substantial equity in property to qualify, variable interest rate, option to make interest-only payments until established cash flow
As always, consulting with a mortgage professional with expertise in the STR market can be invaluable in navigating these waters and securing a loan that fits one’s investment strategy. Feel free to reach out to me and I can put you in contact with the best of the best!
A Day in 30A: Guide around the Emerald Coast
A Day in 30a - guide around the beautiful Emerald Coast!
I get asked all the time what attracted me to Panama City Beach and how did I find this Airbnb location? The answer is 30A. I would see all these IG posts with families on beautiful white sandy beaches and turquoise water with the same location tagged - 30A, 30A, 30A…so I did my research, worked with a local agent for about a year and finally found a place that was not only affordable but also walking distance to the beach - a WIN WIN!
So what is 30A? Known as the "Emerald Coast," it's a collection of beautiful beach towns surrounded by the Gulf Coast of the Florida “panhandle” and nestled quietly between Panama City and Destin along County Road 30A. There aren’t many tourist traps or big hotels in 30A but rather a much calmer approach to beach life with more families than college kids and more local shops than chains. Some of the most stunning beaches in 30A are located in Rosemary Beach, Seaside, Aly’s and Santa Rosa Beach and our Airbnb is located about 10-30min from some of these. For those that staying with us now or at a future date, I decided to put together a day in 30A in case you decide to visit these quaint towns while at SUN-DAZE.
Breakfast in Rosemary Beach
Start your day in Rosemary Beach, just a quick 10min drive from SUN-DAZE. Here you will find tree lined streets, cobblestone paths and picture perfect homes. The town looks like it was built yesterday, everything is clean and new. I took the kids to grab smoothies and acai bowls at Playa Bowls and we ate them in the heart of Rosemary Beach. My husband and I ate at Gallions before and it was great, however, I can’t wait to try Pescado, a rooftop restaurant overlooking the ocean. They are open for brunch but require reservations in advance and kids are allowed only until 1:30pm, after that the restaurant is only open to those 18+ older.
Lunch in Seaside
Another picturesque town, so much so that the city of Seaside was actually the inspiration of the movie The Truman Show, where filming actually took place as well! Seaside is a little more touristy than Rosemary with plenty of restaurants, bars, shops, ice cream, toy stores, book stores…its easy to spend hours here without even going to the beach! Speaking of the beach, this one is private and only accessible to guests staying in nearby hotels or you can rent an umbrella and 2 chairs for the day for $80 (the beaches by our place are just as nice so save your money and just plan on eating/strolling here). We ate at Bud & Alley’s and got gelato at It’s Heavenly. Pickles looked like another great place to eat, hopefully we’ll try it there next time!
Dinner in Santa Rosa
Our final stop in 30a (with our most favorite restaurant so far) is Santa Rosa. It’s about a 30min drive from SUN-DAZE but well worth the drive. We ate at the Vue on 30a and what a view it was! You are literally dining on the beach and its even more magical when you catch the sunset burst across the sky, turquoise blue water and white sand that we walked down to while waiting for our meal to come. Highly recommended!
Beaches in 30a
Destin had some nice public beaches but its about a 45min drive from us and the beaches there are pretty crowded. So many of the beaches in 30a are private to residences and only open to those staying at nearby properties. You can rent umbrellas and chairs to get access but that will cost you so I recommend either the public access at Inlet Beach or of course just walking 500 steps from SUN-DAZE to the beaches of Panama City Beach - it’s convenient, hassle free and just as beautiful as the beaches in 30a!
SpaceX to Launch its first Starship Spacecraft into Orbit
According to tweets from Elon Musk and SpaceX, it’s highly anticipated that SpaceX is on the cusp of its first attempt to launch its Starship spacecraft into orbit around Earth!
Looking to see a rocket launch in front of your own eyes? Book a stay at Sea-Vista and you just may be able to get this once in a lifetime opportunity!
According to tweets from Elon Musk and SpaceX, it’s highly anticipated that SpaceX is on the cusp of its first attempt to launch its Starship spacecraft into orbit around Earth!
The official SpaceX upcoming flight list shows a Starship Flight test scheduled for Monday, April 17, 2023 - and it so happens that Sea-Vista has availability this weekend! Once launched, you will be able to see the spacecraft conveniently from Sea-Vista’s back yard! The official (approximate) countdown can be found directly on the SpaceX website.
In addition to this exciting launch, SPACE.com has gathered together a few other rocket launches, skywatching events, missions & more, which can be found below (hint: you can experience many of these amazing skywatching events from Sea-Vista and Sea-Esta, both of which have availability during these dates):
June 3: The full moon of June, known as the Strawberry Moon, will arrive at 11:42 p.m. EDT (0442 GMT on June 4).
Sept. 29: The full moon of September, known as the Harvest Moon, will occur at 5:58 a.m. EDT (1058 GMT).
Oct. 14: An annular solar eclipse will cross North, Central and South America today!
Oct. 28: A partial lunar eclipse will occur today! Some parts of the partial lunar eclipse should be visible over Europe, Asia, Australia, Africa, North America, North/East South America, the Pacific, Atlantic and Indian Oceans, the Arctic and Antarctica.
Happy Skywatching, friends!
Top Vacation Rental Locations in 2023
Being that it is already mid-February (how??!!) it’s probably too late to make goals for 2023, but in any case, we still have em’! My goal this year is to add another property (2 would be nice) to the Piva Casa collection, whether that means purchasing our own or managing a short term rental on behalf of someone else (if you are looking to hire us to manage your short term rental, be sure to check out our services page).
I’ve been researching different cities and states for about a year now, trying to gather as much information as I can as to where the perfect spot for another family friendly short term rental could be. Through my search, I found an article from AirDNA titled, Best Places to Invest in U.S. Vacation Rentals in 2023. Below is a list of the cities they pointed out based on rental demand (how often rentals are booked), revenue growth, investability (expected income relative to the cost of buying it) and regulation (likelihood of increased regulation in the future ie cities limiting or removing STRs). I have to say, I was a little surprised with this list (maybe it was due to the fact that I have been to 0 cities on the list, ha)!
Have you been to any of these US cities or would you ever be interested in visiting any of them? Who knows, your responses may help us narrow down our next location! Feel free to respond in the comment section below or via our Instagram post…
Fairbanks, Alaska
Evansville, Indiana
Rockford, Illinois
Springfield, Illinois
Burdett, New York
Williamstown, Kentucky
New Haven, Connecticut
Ellsworth, Maine
Cheboygan, Michigan
North Woodstock, New Hampshire
Montgomery, Alabama
Two Harbors, Minnesota
Gainesville, Florida
Saint Ignace, Michigan
Bardstown, Kentucky
South Bend, Indiana
Kalamazoo, Michigan
North Charleston, South Carolina
Logan, Ohio
Augusta, Georgia
Akron, Ohio
Harrisburg, Pennsylvania
Cleveland, Ohio
Waco, Texas
Indiatlantic, Florida