How to borrow with low income and high equity?

[Chris G.]

Hello, I would like advice on how to get financing to buy out the co-owner of my vacation rental property though I have very low income. There are no mortgages on the property. I left my job in IT years ago in order to restore and renovate the house after it was significantly water damaged from a broken pipe. I have no debt, solid credit, and a decent cash reserve.

The vacation rental is tax assessed at $700k ($600k land, $100k house). I will need about $250k to buy out the co-owner. It requires $12k/year carrying costs and should bring in $12k - $20k/year after carrying costs. I just completed the five year renovation so this income is not yet proven (and COVID-19 will hurt this year). My only income is $10k/year after expenses on a long term rental with no mortgage, valued around $200k. I will refresh my tech skills and reenter the workforce, but the economic downturn will hurt that.

How can I get $250k in financing to buy out the co-owner with so little income? How can I use my significant equity in the property? Thank you for your insights.