Yeah, lenders usually prefer the path of least resistance—can't really blame them since they're managing risk. But honestly, I've seen situations like yours more than once. Had a client with a beach rental that was booming in summer but practically empty in winter. Same deal: lender initially pushed back until we showed them three years of consistent seasonal patterns. It's doable, just be ready for some extra paperwork and patience...
You're definitely not alone in this. Seasonal properties can be tricky—I had a similar experience with a mountain cabin that only filled up during ski season. Lenders took some convincing, but thorough documentation and patience eventually paid off... hang in there.
"Seasonal properties can be tricky—I had a similar experience with a mountain cabin that only filled up during ski season."
Totally relate to this. Had a client recently who was trying to finance a beach house rental—great numbers in summer, but winter was pretty much a ghost town. DSCR lenders were understandably hesitant at first, but here's what helped us get through it:
- **Detailed occupancy history:** We pulled together a solid two-year track record showing consistent seasonal patterns. Lenders like seeing predictability, even if it's seasonal.
- **Local market data:** Provided comps and market reports highlighting similar properties in the area, proving our client's property wasn't an outlier.
- **Cash reserves:** Having extra liquidity on hand made lenders more comfortable. It showed the borrower could handle slow months without stress.
- **Clear explanation letter:** A simple, straightforward letter explaining the seasonal nature of the rental and how the borrower planned to manage off-season cash flow.
Honestly, patience was key. We had to shop around a bit—some lenders just weren't comfortable with the seasonal swings—but eventually found one who understood the market and was willing to work with us. It took longer than usual, but we got there.
Hang tight, you're definitely not alone in navigating this kind of deal.
- **Cash reserves:** Having extra liquidity on hand made lenders more comfortable. It showed the borrower could handle slow months without stress.
Good points, but honestly, relying too heavily on cash reserves to smooth out seasonal dips makes me a bit uneasy. I'd rather see a property with some off-season potential—maybe market it differently or offer discounts to locals? Just feels safer long-term...
I get what you're saying about cash reserves, but honestly, having a decent buffer really saved my sanity when I bought my first place. It wasn't exactly seasonal dips, but I had a tenant suddenly move out mid-lease, and it took longer than expected to find someone new. Those couple months without rental income were stressful enough—can't imagine how I'd have felt without some cash set aside.
"Having extra liquidity on hand made lenders more comfortable."
Totally agree with this point from earlier. My lender was definitely more relaxed knowing I had enough in the bank to cover unexpected vacancies or repairs. But yeah, I also see your point about not just relying on savings alone. When I started looking at properties again recently, I've been specifically checking out places that have some flexibility built in—like being close to colleges or hospitals where there's always demand, or even properties with layouts that could work for short-term rentals if needed.
I think it's about finding that sweet spot between having enough cash reserves to handle bumps in the road and choosing a property that's versatile enough to adapt when things don't go as planned (because let's face it—they rarely do). Discounts for locals or off-season specials sound like smart ideas too. My cousin did something similar with his beach house rental—offered weekend deals for locals during winter months—and it actually ended up building a loyal repeat customer base that kept coming back year after year.
Guess what I'm saying is...cash reserves are definitely important, but pairing them with a property that's adaptable and has some built-in backup plans feels like the best way to keep your sanity intact long-term.
