Want to AirB'B my house and build my home behind. How to Finance?

[Marcus Rice]

Hello, all. First post here after lurking for quite a bit.

I own a home in east Austin, TX that has appreciated greatly. I would like to build a storage container home at the back of my land and rent out the older home as a short term rental. I owe roughly 110K on a 147k investment, have 10 years left on my 15 year mortgage. The property is now work 300k+ and while I will be getting some money from a meager inheritance, I would love to build without using any of my own money and have the income pay off any of my mortgage/build costs.

I am curious if anyone has done anything like this, or if they might have an idea on the best way to start setting this up. There seem to be so many ways to skin this particular cat. I was thinking of a HELOC at first but maybe there is a better way?

Thanks for reading and please let me know if you have any insights!

[Manolo D.]

Heloc might be best. While Airbnb is great, it is like applying for a loan while on self employed (airbnb) or w2 income (regular long term tenants). Airbnb might show income but fluctuating vs fixed income when doing regular tenant, as far as the lend r is concerned. If it is that much equity, you can do cash out refi or heloc.