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Updated almost 6 years ago,
Financing for Multiple Cabin Vacation Rental Property?
Hi all
I wasn't sure where to post this so thought I would start here. What sort of financing would one consider for a property that is currently being run as a business (presumably)? It is 10+ acre property that has multiple small cabins on it. It is run as a short-term rental property. We are currently operating a single family home short term rental and like the idea of expanding. It would be a buy and hold property.
If this were a cheaper property, we would just try and buy it as a vacation/second home property (assuming it would qualify). But the total loan amount would be fairly large. Would a business loan be more appropriate? I have no clue how something like that would work.
I've run the numbers based on certain vacancy rates and believe we could make a decent return if we manage ourselves.
I know there are probably quite a few opinions on the idea of the property itself. And if you have first-hand knowledge of running something like this, I welcome it. Otherwise, I'm mostly asking from a financial perspective. What are the best and most appropriate financing options that I should be considering?
Thanks!
Mark