Getting a mortgage loan for a short-term rental property to list on sites such as VRBO and AirBnB can be tricky – especially if you don’t plan to use it as your primary residence. You may require a different kind of financing and fortunately hard money lenders like Constructive Loans have the flexibility to fit your needs to help you meet your investment goals. Constructive Loans uses common sense underwriting standards based on the earning potential of a property, allowing investors to respond to opportunities quickly in an increasingly competitive market. Before you jump into the complex but promising business of buying residential real estate for vacation rentals, there are a few things you should consider:
- Limited inventory and high demand for existing housing mean some of the hottest vacation rental markets are not the best places for a new investor to buy a property.
- State and local laws and regulations concerning the use of internet-based vacation rentals may impact the anticipated rental property cash flow.
- Buying a vacation rental and using a rehab loan to upgrade the property before listing it on the online marketplace might allow you to charge more for rent and also increase the long-term value of the property.
- Vacation rentals in desirable locations may need to be handled by a professional property management firm if you invest somewhere far from your primary residence.
Fortunately for investors looking to get into this exciting area of the residential real estate business, Constructive Loans has an expert team that can tailor a custom financing solution to your specific needs and help ensure a project progresses according to plan. We also offer fix and flip loans and fix and flip lines of credit if you’re looking to expand your portfolio but aren’t quite ready to dive into the vacation rental market just yet. At Constructive Loans, we are a hard money lender who will work to make it easy to help you realize your investment goals – at the beach or in your own hometown.
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