Garwol Financial

Garwol Financial Most problems don’t show up at underwriting — they show up when cash gets tight

I work with active real estate investors on deal structure, exit planning, and portfolio-level capital strategy — especially around fix & flip, DSCR, and refinance scenarios.

Here's how I look at a potential STR purchase before an investor goes under contract.I recently reviewed a lakefront pro...
08/18/2026

Here's how I look at a potential STR purchase before an investor goes under contract.

I recently reviewed a lakefront property on Logan Martin Lake in Alabama:

* Asking Price: $479,000
* 3 bed / 2 bath
* Private dock + boat lift
* Hot tub
* Community pool
* 20% Down: $95,800
* DSCR Loan: $383,200

STR potential:

There are already comparable 3-bedroom lakefront STRs in the area accommodating up to 8 guests with amenities like hot tubs and direct lake access.

Before making an offer, I'd want the actual AirDNA report, but I'd initially test the deal at:

* Conservative: $60K/year — $5,000/month
* Base Case: $75K/year — $6,250/month
* Strong: $90K/year — $7,500/month

The property was originally listed around $509K and is now asking $479K.

At $479K, it's interesting.

At $450K–$465K, it gets a lot more interesting.

Don't just ask, **"Can I finance this property?"**

Ask, "At what price does this become a great investment?"

What's the most important part of a STR rehab?Is it the design, finishes, or amenities?I think all three have to work to...
08/17/2026

What's the most important part of a STR rehab?

Is it the design, finishes, or amenities?

I think all three have to work together.

Design gets the guest's attention when they're scrolling through listings.

Finishes make the property feel higher-end and help create that five-star experience.

Amenities give guests a reason to choose your property over the dozens of others they're comparing it against.

Hot tubs, saunas, fire pits, game rooms and great outdoor spaces can all add value—but simply adding amenities isn't enough.

The best Poconos STR rehabs I've seen start with an overall vision for the property and build the finishes and amenities around it.

You're not just renovating a house.

You're creating a destination people want to book.

If you had to choose one, what matters most: design, finishes, or amenities?

STR buzzwords that matter when applying for a DSCR loan.If you’re financing a short-term rental, these are a few terms t...
08/14/2026

STR buzzwords that matter when applying for a DSCR loan.

If you’re financing a short-term rental, these are a few terms that
can change which lender will actually approve your deal:

Rural — Some DSCR lenders have restrictions on properties classified as rural, even when the property performs well as an STR.

No rental history — Buying a new STR with no operating history?

Make sure the lender can qualify the property using projected STR income rather than requiring historical revenue.

Septic system — Very common in vacation markets, but not every lender treats properties with septic the same way.

Less than 6 months seasoning on a refinance — This is a big one for BRRRR investors. If you recently purchased and renovated the property, seasoning requirements can affect your value, LTV and how quickly you can refinance.

None of these automatically means you can’t get a DSCR loan.

It means you need to know before you apply whether the lender will approve the specific characteristics of your property.

The rate is important. But lender selection and knowing the guidelines can be just as important.

If you’re getting ready to do your first fix & flip, here’s one piece of advice:Make your money when you buy — not when ...
08/13/2026

If you’re getting ready to do your first fix & flip, here’s one piece of advice:

Make your money when you buy — not when you sell.

Before you ever close on the property, know these numbers:

• Purchase price
• Realistic rehab budget
• ARV based on solid local comps
• Financing and holding costs
• Closing and selling costs
• Your minimum acceptable profit

And build a contingency into the rehab budget. Your first project will almost always have a few surprises.

One of the biggest mistakes I see new investors make is falling in love with the potential of a property and then trying to make the numbers work.

Run the numbers first. If the deal works, buy it. If it doesn’t, move on.

There will always be another property.

For those who have already completed a flip: What’s one thing you wish you knew before your first one?

The Rehab Budget Is Part of the Financing StrategyYour rehab budget isn't just a construction number. It's a financing n...
08/11/2026

The Rehab Budget Is Part of the Financing Strategy
Your rehab budget isn't just a construction number.

It's a financing number.

On many of the Fix & Flip loans we structure, 100% of the approved rehab budget is funded and held in escrow.

That changes how I look at a deal.

If you're buying for $400,000 and planning a $100,000 renovation, there's a big difference between:

Bringing $100,000 of your own money for construction...

and having that $100,000 included in the financing.

That's capital you can potentially keep available for:
Carrying costs
Unexpected expenses
Your next acquisition
Growing the business
For an investor trying to scale, how the rehab is funded can be just as important as how the purchase is funded.

Don't Underwrite to the Perfect ExitA fix & flip shouldn't need everything to go perfectly to make money.When I'm lookin...
08/10/2026

Don't Underwrite to the Perfect Exit

A fix & flip shouldn't need everything to go perfectly to make money.

When I'm looking at a deal with an investor, I like to see room in the numbers.

Not just:

Purchase: $400,000
Rehab: $100,000
ARV: $650,000

But:

What happens if the rehab becomes $115,000?

What happens if it takes 30 days longer?

What happens if the property sells for $625,000 instead of $650,000?

A strong deal can absorb a few surprises and still work.

That's especially important in today's market.

Don't just calculate your potential profit. Stress-test it.

Your profit on a fix & flip is often made when you buy—not when you sell.Before making an offer, experienced investors w...
08/05/2026

Your profit on a fix & flip is often made when you buy—not when you sell.

Before making an offer, experienced investors work backward:
What is the realistic ARV?
What will the rehab cost?
What are the financing and carrying costs?
How long will the project take?
What happens if it sells below the projected ARV?

A great renovation helps, but it can't always fix paying too much upfront.

Buy right. Create value. Leave room in the deal.
Where do you think most flip profits are made—at the purchase or during the rehab?

Finishing the rehab is only half the strategy.For investors doing a fix-and-hold or BRRRR project, the next step is just...
08/04/2026

Finishing the rehab is only half the strategy.

For investors doing a fix-and-hold or BRRRR project, the next step is just as important:

Getting out of the Fix & Flip loan and into long-term financing.

This is where traditional banks can sometimes slow an investor down.

You've already:

Purchased the property.
Completed the renovation.
Created the equity.
Set the property up as an STR.

Now you want to refinance based on the new appraised value, pull cash back out, and put that capital into the next deal.

Investment lenders are built for exactly that.

A DSCR cash-out refinance can qualify primarily on the property's rental income rather than your personal income or employment.

Depending on the lender, there are also options with shorter—or even no—seasoning requirements that can allow the refinance to use the new appraised value after the rehab is complete.

For STRs, the right lender may also be able to qualify the property using AirDNA or actual short-term rental history.

For investors, speed isn't just about how quickly you close the purchase.

It's also about how quickly you can access the equity you created and put that capital back to work.

Buy. Rehab. Refinance. Repeat.

Funded Deal – Scottsdale, AZ Fix & Flip Another Scottsdale project closed and funded.Here's how this one was structured:...
08/03/2026

Funded Deal – Scottsdale, AZ Fix & Flip

Another Scottsdale project closed and funded.

Here's how this one was structured:
Purchase Price: $920,000
Rehab Budget: $297,600
ARV: $1.6 Million
Total Loan Amount: $1,090,900

Financing:
90% LTC
Buyer brought 10% of the purchase price to closing

100% of the $297,600 rehab budget funded and held in escrow
Seller provided a $56,900 credit toward closing costs

This is a great example of why the entire deal structure matters—not just the interest rate.

The investor was able to acquire a $920,000 property with 10% down, finance the entire renovation budget, and negotiate a significant seller credit to help offset closing costs.

Now the focus shifts to executing the rehab and working toward the $1.6 million ARV.

Purchase. Renovate. Create value. Repeat.

Banks are great for many types of financing.But when it comes to fix & flip projects, short-term rentals, and investors ...
07/29/2026

Banks are great for many types of financing.

But when it comes to fix & flip projects, short-term rentals, and investors who need to move quickly, they're often not the best fit.

Most investment deals have deadlines.

You may be competing with cash offers, buying an off-market property, or trying to close before another investor does.

Many traditional banks aren't built for that.

Investment lenders are often able to offer things like:

* Faster closing timelines
* Financing for properties that need renovations
* Loans to investors purchasing in an LLC
* DSCR loans based on the property's cash flow instead of personal income
* Flexible financing for short-term rentals

The financing should match your investment strategy.

If your goal is to build a rental portfolio or renovate and resell properties, working with a lender that specializes in investment real estate can save you time and help you stay competitive.

What has been your biggest challenge financing an investment property—speed, guidelines, or something else?

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