Ultimately, the decision should align with your long-term and short-term goals.

Airbnb is considered STR (short-term rental).

If it's worth that much, taking a HELOC on it should not be an issue at all long-term or short-term as long as the bank will do it.

Meaning you use the life-left of all the components that will need replacing in due time and factor that into your offer.Components expiring within a short period of time needs to be accounted for as deferred maintenance.

Give me a shout if you have questions, but here's the short of it.Best financing is going to be from a bank or a conventional construction loan.

@Jordyn Ohsnot enough info to helpbut if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leveragei would never do that unless i were going to refinance in the short term

20% is about average for a short term rental as far as management fees go.

In short, having all the conversations and commitments in strategy, setting up LLC and all the fun docs of who's doing what, and I'd suggest even getting initial funding into account for at least EM. 

In my mind sub to is for short term .. long term rentals is very problematic for many reasons. 

Conveniently located just minutes from the interstate, this home offers an easy commute to Bangor and Newport, while Etna Pond and its public boat launch are just a short drive away.