Financing a vacation rental

[Stijn T.]

Hello,

My wife and I are looking at doing a 1031 exchange and purchase a property on the Oregon Coast. We understand that it's not very realistic to expect that a vacation rental will be the greatest investment but this is a hybrid endeavor. Her part of the 'vacation', mine is the investment portion of it. 

We are only just starting our search and have gotten in touch with a local realtor (who happens to be registered on BP) so we can focus our search rather than be all over the place. 

I was wondering if anyone has experience with this vacation rental scenario. Will a financial institution ever take into consideration past vacation rental performance as part of the picture for financing. We could get a decent amount of financing as is, but an additional 50-100k would really open up the possibilities. We would certainly make sure that we could afford the 2nd home with no rental income whatsoever but that's not a scenario we are assuming to be the norm either. 

If banks do look at past rental history then looking at established rental properties may be our best bet. Any ideas?