Loan on Airbnb property under LLC?

[Gina Kuchta]

Our LLC has one river-front Airbnb that we run through it. We need to replace our bulkhead, and want to take a loan through the business using the equity in the home.

My husband (who is a partner in the business) is only seeing minimum income requirements of $3,000 a month. We do not clear $3,000 a month on Airbnb income. We both have W-2 jobs. 

Can anyone recommend a lender we can use to get a HELOC or HELoan on our investment property that doesn't have business income requirements? Are we overlooking something? Would appreciate any creative financing ideas anyone can offer who may have been in a similar situation?

Thanks!

[Gina Kuchta]

Quote from @Patrick Roberts:

I'm not 100% clear on what you're asking. Are you trying to borrow against equity in the property without refinancing the first lien, or is there even a first lien? Also, how much are you trying to borrow, and what is your exit plan for paying off the new loan? These details will make a significant difference. 

If you're trying to get a nonrecourse business loan, then the business will need sufficient income to cover the debt service on that loan. If you're trying to qualify using your personal w2 income, that's a different story. It sounds like youre trying to get a nonrecourse commercial loan using your w2 income as the basis for repayment, which is unlikely. 

There are 2nd position mortgage products for investment properties, but they can be difficult underwrites. Typically, the minimum loan amounts on these start around $100k and go to a max CLTV of 70 or 75%. Happy to point you in the right direction if you have more details.

Thanks for the response, Patrick.

Yes, we are trying to borrow against the property without refinancing the first lien. We have a great interest rate that we are not willing to give up.

It's looking like we will have to take a HELOC or some sort of loan on our primary and use that money as a "business loan" to do the bulkhead, which will be about $30K.

Appreciate the insight and the quick response. It was super helpful!