Hello!
New to the community and interested to hear your opinions on what could be the best strategy for me.
2 years ago my father passed away and I inherited a single family long term rental. I have been holding and self managing, there are long term renters who are GREAT tenants already in place. The property is in a small market, but it’s not even 50 feet from the brand new elementary school that was built in the last 5 years. A lot of other pros I haven’t mentioned. Even though I claimed a nice step up in basis and the property is paid off, I don’t want to sell.
My fiancé and I want to get into the short term rental game. We identified a market we are interested in, and have been evaluating properties. I understand a short term rental is a bigger investment than a long term because we have a little rehab to do, and furnishing as well. It’s also a more active investment.
Given the current lending landscape, I am wondering what the best strategy would be for us to finance this short term rental. Would a HELOC on my existing rental be a better option than a traditional refi? If so, why? I have about 150-200k in equity in that property.
Any and all information would be appreciated! Thank you!
