Short Term Rentals and Lenders

[Jazmine Bryant]

One of my goals for the next 365 days is to acquire two properties that I will do short-term rentals on (AirBnB and the like) and I plan to purchase them through PMLs and/or HMLs. 

Do PMLs and/or HMLs usually have any stipulations on how the property is being used while there is a loan on the property - whether the tenant has to be short-term or long-term?

I ask because I'm planning out my objectives for the next few years and want to make sure I'm getting this right. 

Thanks in advance. 

[Cheryl Vargas]

HMLs are going to charge 10-11% interest and they only lend 70-80% of the purchase price and only for a short time such as 1 year. Can you get a 15 or 30 year bank loan after 1 year by only renting to STRs?  It sounds like you might not be rehabbing your potential properties in order to add value. Is that right?

Also, try calling HMLs in your area and ask them about what are their fees and lending caps and if they lend $ for rehab work as well. 

Those are great goals!!