Vacation rentals are a really great way to accelerate cash flow to build your investment portfolio in whichever way you choose.I’ve connected investors with over 95 properties in this market this year, it’s not as bad as the above post is making it out to be.

Trust your gut, whichever way you go.

The two criteria you mention mean that the max amount you can receive for the loan corresponds to whichever is the lower of those two numbers.  

Loans with 90% or less can not cancel until 11 years or the maturity, which ever occurs first.  

For example, commencement language may read as "rent and lease term to commencement 120 days from turnover or opening of business, whichever is earlier."

If you bought the property with cash you can only cash out up to 70% of market value or your cost as determined by your final HUD upon acquisition whichever is "lower."

The rule for about 40 years that I know of has always been within one year, the appraised value or the cost of acquisition (including repairs for hard costs), which ever is less and after one year the loan is based on the appraised value.

.----"$99,900 purchase price ----$25,000 down payment from buyer----$1,000 buyer closing costs paid----seller Financed mortgage of $75,000 at 7% interest on a 10 or 15 year am (whichever buyer would prefer).

If they (are brave/foolish enough to) lend, they will typically lend at about 70% of purchase price or current value, whichever is lower.

You can cash out any time if you purchase in cash up to 70%ltv of appraisal value or purchase price whichever is lower.