Funding Second Building on Single Lot

[Drew Gelinas]

I currently have a large ~3 acre waterfront lot that has a 2 unit home (with separate utilities on it), being used as an Airbnb. The area it is in has an opportunity to have strong cash flow on long term rental with less headache, but would still leave a large open lot closer to the water. We are looking to build a smaller home that will qualify as an ADU (to avoid subdividing process) and Airbnb out the new build.

the main challenge is we have a 3.5% interest rate in the main house with the land, so want to avoid refinancing to a far higher rate rate for 2 properties, as that will bring monthly expenses far higher. We can't fully cover cost of new build with HELOC, but if we can get a decent rate we could get great Airbnb cash flow. Thought about hard money but given that I would still never be able to ditch it without eliminating our 3.5 rate and cash flow of existing property, doesn't seem to be a best bet.


curious if there are any expert lenders out there who may have a creative solution I haven’t thought of, to get the second building built on the lot without affecting loan and rate in place of current building.

Thanks All!