8
👁🗨 Sesemi STR Hot Sheet | 📲 STR Mortgages
Coastal inventory grows but still competitive for vacation rental prospects.
Welcome to a short Sunday edition of Sesemi STReet your go-to for HOT vacation rental insight and listings for sale.
Mortgage Rates Rise. The average 30 year fixed mortgage rate is 7.5%
Median price of luxury homes hit an all time record of $1,225,000
Cash closings. 1/3 of all transactions are CASH
If you missed it, we moved our STR HOT sheet to an easy online and invite only website: SESEMI SHEET for convenient shopping and scrolling. Text us for the cheat code!
💡 Three mortgage moves investors are making
Higher borrowing costs have made dealmaking more challenging. Here are three strategies to improve Cash on Cash returns in the near term.
🔑 Interest rate buy downs. Typically must be seller paid as part of a concession and effectively reduces the qualifying rate by 1-2-3% for up to 3-2-1 year. Essentially the difference in pre paid interest is rolled into the loan reducing the monthly obligation accordingly.
🔓 Seller concessions. A seller contribution towards closing costs and prepaids can be incorporated into the loan and reduce the cash required to close. On average seller can contribute up to 2% on a investment property and up to 6% on a second home transaction.
📝 Niche loan programs. Investor friendly lenders or mortgages can reduce the down payment and/or interest rates. Local credit unions or industry specific loans can provide below average terms, favorable seller carried transactions are also something we work regularly on multi family properties.
📬 Here are TEN STR Picks this week on the OR Coast: