Can You Get a Business Loan For a Short Term Rental?

[David Lowe]

I currently have no salary to show mortgage companies cash flow to get a mortgage approved. I don't want to have to spend $250k cash on a house to use as a short term rental because I want to have multiple projects running with less cash locked in. The STR model is a well proven one and I have data to support the market I am going into. Is it possible to get a US business loan for this? If so, what type of interest rates are you hit with?

[Avery Carl]

@David Lowe Gatlinburg gets 12 million visitors a year to the Great Smoky Mountain National Park. The vast majority of that traffic stays in short term rental cabins. We have very little hotel presence, and have some of the highest occupancy rates in the country. I own 5 here. It’s definitely in the top 5 best markets to invest in short terms/vacation rentals. It would have to be an in-house loan, but I have several lender contacts who can use projected rent income for this situation. You just have to find a lender who is local to the market you’re looking to invest in who sees this kind of thing often, not a big national bank or online lender.