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Updated over 5 years ago,
Short Term Rental but No Access Deal
All,
I am looking at a FSBO property it has 2 honeymoon cabins that are short term rentals and almost 4 acres. It is in the mountains in a great location. I would rent it mostly but also use it to hike and fish out of. The owners live on the tract next to it and access it through this tract. It has road frontage on the other side of property. Bank said they won't loan on it with no access.
I told the sellers the bank won't loan with no access and they said they wanted a "deposit" for the full cost of building a driveway. They previously got two quotes one 10K the other 16K for driveway. The owners have a recent appraisal at 375K and selling price is 300K. It sounds risky to pay for a driveway and then what if the loan doesn't close for some other reason. Is there a good solution to this? Any ideas?
Mike