How to finance my second airbnb property
Hello!
My husband and I just bought an airbnb property in Atlanta earlier this year. It's going so well we are looking for our next investment.
The home next door to us was put up for sale and we currently have it under contract! The purchase price is $330,000 and needs an estimated $130,000 worth of work. The estimated ARV is $515,000 (conservatively). I'm interested in this property not only for the cash flow but also because the current tenants living in the home sell drugs and I want them out - so I want to buy it. I plan on taking down the dividing fence between the properties to create a communal space (fire pit, outdoor dining area) for the guest to enjoy which will also raise my airbnb price per night in all units.
I can get a conventional loan to cover the renovation and the purchase price for 20% down (just over $110,000). I'm doing more research into finding a way to BRRRR this property using private money lending so we can put less money down upfront. My husband and I both have excellent credit.
I already have a third potential property on the horizon. It feels like I can't grab them all fast enough!
What are some creative options for financing this deal?
I'd so appreciate your time and advice for me! Thank you!