Tips on how to purchase a STR when you can't "afford" one

[Alleigh Follett]

Hi,

We are wanting to get our first STR property, but according to our income alone, we wouldn't get approved for anything additional. We have over $100k equity in our home and great credit. We are considering a HELOC. Are there any other options we could look into for financing?

Thanks!

[Travis Timmons]

I don't know how you want to or can structure the financing, but do not go into a STR purchase cash strapped. The front end is harder and more expensive than you will likely anticipate. It's stressful enough getting through the "this better work, we're spending so much money" phase when you do have a cash reserve. I'm a believer in revenue over ready, but you can't cheap out in certain areas when getting a place off of the ground.