Blue Ridge, GA - Thoughts and opinions

[Alton Johnson]

I'm currently in the process of acquiring my first short-term rental property in the Blue Ridge, GA area and would greatly appreciate your insights and experiences with similar situations. I've encountered some unexpected challenges with my lender that have raised concerns about the investment potential in this area.

Here's a bit of context: The property I'm interested in is a 3-bedroom (5 beds), fully furnished, with a creek in the backyard, a fire pit, a basement, and some recreational amenities. While it doesn't boast stunning views, it's valued not too far from $1m. Initially, my lender was enthusiastic about the property and indicated that a down payment of 25% to 30% would suffice. However, as we approach the closing date, they've suddenly requested a higher down payment of 40%, citing a "declining market for short-term rentals." It seems they weren't fully aware of the market conditions when they initially provided the terms of the loan, and this has left me somewhat perplexed.

I've been trying to gather more information, including a copy of the appraisal, but my lender has been unresponsive. My earnest money deposit is now at risk, and I want to make an informed decision.

I have a couple of questions for the community:

1. Has anyone else experienced a similar situation with their lender, and do you suspect any irregularities or shady practices?
2. Is Blue Ridge, GA, genuinely experiencing a decline in the short-term rental market, or do you think my lender might be using this as a justification for a larger down payment?

Your valuable insights and experiences would be immensely helpful in guiding my decision-making process. Thank you in advance for your assistance.