One of the first steps in short-term real estate investing is knowing your financing options. Getting the right loan is what helps your vacation property gain traction.
However, what some people might not know is that your choices expand beyond traditional commercial banks. We have many non-bank lenders at our disposal, and deciding between the two lending types might require some reading.
As of June 2021, there were approximately 1.32 million active rental properties in the United States alone, and analysts project those numbers will continue climbing for the foreseeable future.
This increase in Airbnb and Vrbo activity is incenting investors to purchase vacation properties used for short-term rentals during busy travel times. While many of us want in on the action, we must first research the vacation rental property loans available.
Why Short-term Rentals?
For many years, short-term rentals were inefficient and prohibitively expensive.
Limited technology forced property owners to advertise their rental units through local newspapers or management companies. These options are not only expensive but also limited in scope – local listings will not reach out-of-town tourists looking to visit the property owner’s area.
Every year, Airbnb continues to grow in popularity all over the world. The word is out: staying in a house you have all to yourself beats a hotel room. It’s often cheaper, too. This is also why Airbnb investment property loans continue to grow in popularity.
As someone who invests in rental properties, you probably put in long hours, both in terms of adding to your portfolio and maintaining your current list of holdings, too. In fact, you’ve probably been putting in those long hours for years