30 year loans for investment or vacation home

8 Replies

Anyone have any recommendations/referrals/tips on how to secure a 30yr loan for a vacation/investment property? We do intend to rent it out via ABNB and others as well as use it ourselves. Thanks in advance for any feedback!!

How many days a year do you plan to use it yourself versus rent out? That determines if it is vacation / second home or investment home. IRS has specific rules on how many days you can occupy versus rent to qualify for tax advantages. I think you want to treat this as an investment property, so finance and insure it as such. AirBNB / STR require special insurance policies and disclose to your lender that it is an investment property. Even if the terms are not as good, be truthful to avoid issues down the road.

Originally posted by Johan Van Rensburg:

@Joe Splitrock thanks Joe! We will likely use it at least 3-4weeks out of the year.

The rule is greater of 14 days or 10% personal use. Anything over that for personal use and you need to split expenses between rental and personal. I would just target to keep it rented at least 210 days for 3 weeks personal or 280 days for 4 weeks personal usage. That shouldn't be an issue with AirBNB provided you keep the property actively listed.