Financing for Multiple Cabin Vacation Rental Property?

[Mark S.]

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

[Mark S.]

@David Taylor  There is really no way to guess what they did.  I would make sure to include some budget estimate for other things like:

Marketing  (even Airbnb/VRBO fees, etc can fall into this)

Mileage (you getting to and from)

Maintenance/Service Vendors (lawn, hot tub, firewood, etc)

I'm not an accountant so I'm sure others will chime in with better advice.  Best of luck.