30-Year DSCR Loan for Short-Term Rental in Delray Beach, FL

Funded by i Fund Cities

Delray Beach, FL

$960,000

Single Family Residence

Residential Long-Term Rental

01/10/2022
Transaction by
i Fund Cities
PURCHASE PRICE: $ 1,300,000
ESTIMATED MONTHLY SHORT-TERM RENTAL INCOME: $6,000
LOAN TO VALUE: 80%

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 tends 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. The KEY LOAN BENEFIT to the borrower is that 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!”