Finance 101: How do I buy this?

[Karin Crompton]

Hey all,

I'm looking for some how-to on financing.

I'm part owner of a vacation rental in New Hampshire with a group of family (we comprise 3 families altogether). We're coming up on 5 years of ownership and the business plan all along has been to sell after 5 years.

Meanwhile, I've decided to pursue vacation rentals on my own as an avenue to buy-and-hold, so I'm looking to add this investment niche to my portfolio.

Which means: I'm considering buying our current vacation rental from the other 2 families and owning it myself, assuming the numbers work (I need to do some additional analysis, as we used a HELOC from my parents and made interest-only payments for the mortgage; the remainder of the cash to furnish and make repairs came from $$ we each threw into the pot at the beginning). We've always run it like a business, and I have the records to prove it. It's always been a rental first.

My question is: what options are available to me for purchase? Everyone else wants to cash out, so owner financing really isn't on the table. So what do I do? Do I go to a bank and talk to them about a refi? Is it a commercial loan? Or maybe some other scenario? Can I purchase this in the same way someone might purchase a multi-family, so long as I demonstrate that it is indeed a rental property? How closely will they look at my personal credit and income (I'm self-employed), especially if I bring them a solid business plan?

Thanks in advance for any help!