Vacation Rental Loan Structure
August 2026
Regional Bank
75%
1.25x
5 Years
1% for 1 Year
6.75% fixed with 3 months of interest only payments
0.50%
Narrative
Closed: $4,575,000 vacation rental loan on a luxury hospitality property in Sarasota, Florida.
Yes, it looks like a house. But it's a vacation rental that operates like a small hospitality business, with ADR, occupancy, and operating expenses, and it needed to be financed that way.
Most lenders run a property like this through a residential box. A residential appraiser asks one question: where would this sell as a house? Income barely enters the conversation, and that leaves a lot of value and loan proceeds on the table.
So we found a lender who would underwrite it as a commercial property and order a commercial appraisal.
Just as important, the appraisal was done by a hospitality appraiser who knows how to evaluate ADR, occupancy, and operating costs. The valuation reflected what the asset actually earns, not just what the building would sell for as a home.
The result:
The same property can produce very different loan proceeds depending on which lender underwrites it and which appraiser values it.
If you own a vacation rental or boutique hospitality asset that's being valued like a house, reach out to Randy Efron at [email protected] or 813.820.1669.
Congratulations to our client on a great closing.
Skylatus Property Capital raises debt and equity for hospitality and multifamily owners, operators, and developers nationwide.
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