Financing additional short term rental properties

[Mark Futalan]

Hello BP,

I own a short term rental property in the Coachella Valley here in California. Bought the property as a 2nd home/vacation property last year after selling our primary residence in 2017. Put the conventional 20% down. I’m looking to purchase another property in the same region, hopefully a nearby city and I would like to go in with a lower down (10%), but it seems like my only option is to put 20% down since this will be an investment property. The home is to be used every now and then as vacation home and rented out on a short term basis the rest of the time. Trying to figure out if there are other creative ways or options to be able to put a lower down payment. I was told I can purchase get a 2nd home/vacation home financing but it can’t be in the same region as my first. My wife and I both work in LA. Any feedback would be greatly appreciated, thanks!