Florida DSCR Long-Term Rental Lenders

RCN Capital, a national direct private lender, funded an $842,921 DSCR long-term refinance loan secured by a single-family residence in Pompano Beach, FL. The Borrower is an experienced investor looking to cash out on the subject property and pay off an existing lien. The subject property’s value was approximately $1,900,000 as-is, subject to a Collateral Desktop Analysis, so the loan-to-value for our 1st mortgage was 44%. We paid off a previous loan balance of $550,000 and provided over $290,000 in cash-out funds. The subject property was being leased for $9,000 per month which was above the market rates as per the appraiser’s estimate of $8,500. The Sponsor had good credit with a mid-score of 693 and bank statements that reflected sufficient liquidity which met our reserve requirement. The total loan amount was 43.3% LTV with a 1.10 DSCR. The 9600-square-foot property was in excellent condition. The fixed interest rate was 7%. We charged 4% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in October 2022.

RCN Capital, a national direct private lender, funded a $348,000 DSCR long-term rental loan secured by a single-family residence in Sarasota, Florida. The subject property’s value was $435,000 as-is so the loan-to-value for our first mortgage was 80%. The Borrower initially purchased the property for $275,000 and completed a $50,000 rehab. Our loan paid off the previous loan balance of $327,000. The Borrower was an experienced repeat investor and planned to hold it as a long-term rental. The deal closed with 6.2583% fixed interest rate and 4 points for origination. The loan term was set at 30 years with a 5-year prepayment period. They were delayed finding a tenant due to the hurricane at the time, but the market rent was estimated at around $3,000 which resulted in a debt service coverage ratio (DSCR) of 1.19. The Borrower had a mid-score of 758 and a bank statement that reflected sufficient liquidity. The approximately 9,147-square-foot subject property was newly renovated and vacant at closing. This DSCR rental refinance loan was funded in November 2022.

i Fund Cities (iFC), a direct lender, funded this 30-year fixed mortgage loan for an experienced investor in the on-fire Delray Beach, Florida real estate market who wanted to use the property for short-term rentals. The investor currently has more than a half dozen rental properties in the booming beach town that sits about halfway between West Palm Beach and Fort Lauderdale. The client came to i Fund Cities to fund a property in Delray Beach that he intended to use as a short-term rental. Although some lenders do loan on short-term rentals, the property type is considered more of a risk, and so lender loan criteria tend to be more stringent than a long-term single-family rental loan. In this case, the client was getting resistance from other lenders because the home had the furniture included in the deal. He needed a lender who would loan on a home that was a turnkey short-term rental. i Fund Cities offered the borrower 80% loan-to-value on the appraised value of the property.

Key Loan Benefit to Borrower:

The client acquired a new investment property that will cash flow up to $6,000 a month in short-term rentals.

Customer Feedback:

Says iFC Loan Officer Andrew, “This client told me he was ecstatic to get 80% leverage on his property with no lease (since he was doing short-term rentals) and he was very happy that we closed without changing the originally quoted terms!”