Have you ever heard of a condotel? If not, you’re in for a treat! A condotel is a fascinating hybrid between a condominium and a hotel that offers owners the best of both worlds. Not only can owners enjoy the unit themselves, but they can also generate income by offering it as a short-term rental property.
Here are some key details to keep in mind when considering investing in a condotel:
- Loan-to-Value (LTV) Ratio: Condotels typically have a maximum LTV ratio of 65%, which means that we will only finance up to 65% of the property’s value.
- Ownership Limits: Single entity ownership in condotels is usually limited to 15% of the total units. This restriction helps maintain a diverse ownership structure within the property.
- Bank Statement Loans: If you’re looking to finance a condotel, keep in mind that bank statement loans credit score starting from 620. This means that we will carefully review your bank statements to assess your financial stability.
- Refinance Cash-Out: Condotel owners have the option to refinance and cash out up to $1 million. This can be a great way to access additional funds for renovations or other investments.
- Interest-Only Options: Some condotel financing options offer interest-only payments on a 40-year term. This can provide flexibility in managing cash flow and potentially lower monthly payments.
Condotels offer a unique investment opportunity for individuals looking to own a property that can also generate rental income. With careful consideration of the specific details and requirements, investing in a condotel can be a rewarding venture. So, if you are thinking about investing in a condotel, contact us and speak to a professional who knows all there is to know about financing a condotel.
