Financing a short term vacation rental in Orlando

[John Frank]

We are looking to buy a vacation home in Orlando near Disney. The problem that we are having is figuring out how to finance these types of properties. The most recent property that we found is in need of some work as well as requiring the purchase of furniture.

What is the best way to finance vacation rentals?

[Stephanie P.]

Originally posted by @John Frank:

We are looking to buy a vacation home in Orlando near Disney. The problem that we are having is figuring out how to finance these types of properties. The most recent property that we found is in need of some work as well as requiring the purchase of furniture.

What is the best way to finance vacation rentals?

Some lenders will do short term rental properties, but many will not.  

Portfolio lenders will be a good source, but many of them will not.  Here's what  you need to do:

• Find a good mortgage broker that has done these in the past.  
• Be prepared to put at least 20% down
• Your rate will not be a Fannie Mae rate.  
• Have a pro-forma for the short term rental ready to go  
• The lender will have to find an appraiser that will use short term rentals as comps (VERY important)

Best of luck

Stephanie