Scenario: I recently bought a home to use as a 100% vacation rental in another state. I used a traditional lender and it's a personal mortgage. The rental is doing extremely well, and I'm on track to make cover all expenses and turn a profit in the first year (bought December 2020).
The house next to it is now up for sale, and I want to buy it. It's half the price of the one I purchased, but I am having trouble securing a loan. No traditional lenders will consider because they said I need to wait a year or longer to have tax returns that I'm turning a profit even though I have documents from the property management I'm using that it's turning a profit. I have the rental under an LLC, but banks with commercial lending said the business needs to exist for at least 2 years before you can apply for a loan.
Aside from sellers financing, which they won't consider, is there any other options I can consider?
Right now the options on the private side are slim to none but in the coming months our guidance is going to change and their will be much more options on the table for short term rentals. Was on a conference call this morning, times are a changing.
Buy an option on the property
Do you have a 401k you can borrow from? IRA?
Who do you know that might have one of those to lend to you?