Creative STR finance solution?

[Lindsey Johnson]

Hey BP family,

I have an interesting question for you all that I am hoping to get some clarity on.

I am an agent and a new investor. I am moving across the country in a couple weeks due to some family issues. As we have been planning the move I have been diving deep into the local market. I have found a couple properties that, with a little love, would make great short term rentals. I have a financial partner who is interesting in going in on a deal with me. I would be the boots on the ground to facilitate the purchase, minor cosmetic rehab, future STR listing/fulfillment, and expenses. We would split net profit 50/50.

My question is this-what do you recommend in terms of financing this deal? Since I am moving and have not yet secured a new W2, I do not qualify for a loan. My partner can bring the downpayment and rehab costs, but we are not sure if he should also carry the note. How would that work with appreciation down the line if the note is in his name? Is there a better way to structure the deal?

Just looking for some wisdom, a creative solution, or even a connection to a lender who may be able to help.

Thank you in advance for your thoughts!

Lindsey 

[Robin Simon]

Quote from @Bob Reinhard:

Financing will likely require you to have a 1-year operating expense cushion; with the property generally not being in tiny population area not too 'rural' whereby comps cannot be located.

Reach out any time by phone or email to discuss anything real estate.

Bob

 This is not true - plenty of options that wouldn't require such a cushion