Revenue from VRBOs (Vacation Rentals By Owner)

[Stacey Johnson]

I'm still waiting for banks/lenders to acknowledge revenue from VRBOs as real.........it's my understanding from countless interactions with the above that this industry isn't sure how to deal with this, in relationship to mortgage lending. 

The other side of this is when it's time to sell do you price and market the property as a business/commercial property and set price based on revenue and cap rate? or market it conventionally and assume that someone isn't interested in the revenue it brings in? I've asked commercial Realtors this and no one has given me a clear answer.

I feel like the only one who "gets it" with the VRBOs. It's an industry that is growing at a rate ten-fold the hotel industry and it's so misunderstood in the real estate lending world.

Am I alone??? 

[Shawn Pennington]

I haven't had a problem with this ( I own two in Disney area)...but I think it might depend on the strength of your bank relationship, and/or finding the right bank...The first property I bought with an unsecured loan (yes unsecured!) because my bank in TN couldn't conventionally mortgage the property because it was considered a "condo" (even though its actually a townhouse....... I have such a great relationship with my bank that they just gave me the unsecured loan to buy the property....I bought at the right price, it appreciated a great deal in short term...and then while looking for my second property a few months later I got referred to a bank in the Orlando area that "gets it!" in terms of vacation rentals..... they refinanced my unsecured loan, I was able to pull the added equity out of it from appreciation and use towards my downpayment on the second one, which they also put a conventional mortgage on without even thinking about it...cause in my case they understood that obviously the vacation rental business in Orlando is huge......