Funding to Buy/Rehab for an Airbnb property

[Jeri Artal]

Ok Experts, I need your help.

We have a unique opportunity to purchase a downtown property that would make a perfect Airbnb location.  Large property with between $10K and $15K MONTHLY income potential.  We have several roadbumps that I would love insight on, including:

1) Is this a loan for a business??  Or a residential mortgage?  

2) It doesn't qualify as a buy and hold really, nor a flip, right??  So....what is it??

3) How does ARV factor in, considering the income potential. Does that override the ARV? And if not, how do we even calculate ARV when there is NOTHING like this property anywhere in its vicinity. There have been 3 different ARV figures offered up, who is correct???

We have the majority of our funding inline, we are shy about $30K.  All suggestions/insight/etc is highly appreciated!  I hate to see this deal slip away!!  Thanks!

J

[Al Williamson]

I'd structure this as a real estate deal only. I'd advise you to make sure the deal works under normal traditional landlord conditions before you proceed. If you buy the property based on it's short-term rental potential, then you (1) might over pay, and (2) will lose the option of having a traditional rental be your safety need. Best to you