Creative Real Estate Financing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago,
What are my options?
Scenario: I recently bought a home to use as a 100% vacation rental in another state. I used a traditional lender and it's a personal mortgage. The rental is doing extremely well, and I'm on track to make cover all expenses and turn a profit in the first year (bought December 2020).
The house next to it is now up for sale, and I want to buy it. It's half the price of the one I purchased, but I am having trouble securing a loan. No traditional lenders will consider because they said I need to wait a year or longer to have tax returns that I'm turning a profit even though I have documents from the property management I'm using that it's turning a profit. I have the rental under an LLC, but banks with commercial lending said the business needs to exist for at least 2 years before you can apply for a loan.
Aside from sellers financing, which they won't consider, is there any other options I can consider?