Looking For Financing For Airbnb Home In N Cali

Oj Brown

Member since 2021 · 20 posts · 9 votes

I'm looking to buy a property in N Calif. for 2 million to run as a

Airbnb vacation rental. It has the best ocean views and right near a

tourist town. I need someone to finance it and I will run the vacation

rental. I have 15 years experience of successfully business running my

own vacation rental here in Tucson, AZ and 2 years professionally

managing for others homeowners. I'm a experienced Airbnb super host and

know what it takes to run the business. I'm also publishing a book about

how to start and run an Airbnb. The current zillow listing online says

the current sellers have been running the 3 bd 3 ba home on airbnb for 8

years and make 140K per year backed by Airdna. Where can I find a

business partner/lender so I can purchase this home and run it as a

business?

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

This doesn't sound like that great of a deal to be honest.

what are taxes and insurance on the property ? what is the NOI - is the 140k rental income only or after all expenses

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Jaedon Stout
Investor · Member since 2024 · 10 posts · 4 votes
1y
@Oj Brown

This sounds like an incredible opportunity, especially with your Airbnb experience and proven track record. Given that your already running a successful vacation rental business, one of the best ways to finance this deal could be leveraging your business itself.

Most real estate investors think of financing strictly in terms of mortgages or private lenders, but business funding can be a powerful tool. Since you already have an established business with cash flow, you could secure $50K-$150K in 0% interest business credit lines for 12 months all without it reporting to your personal credit. This method keeps your debt-to-income (DTI) ratio low, which is crucial when applying for additional financing.

Many investors stack multiple LLCs to maximize their funding or use these credit lines for down payments, reserves, or renovation costs while keeping their main capital liquid. If you're re planning to purchase under a business entity, this also makes you more attractive to lenders by showing strong liquidity.

Additionally, since you re already publishing a book and have a recognized presence in the Airbnb space, you could even leverage your business as an asset securing funding based on future projected earnings. Some lenders or business credit providers consider recurring revenue from an established business as collateral.

The key question is how quickly you need funding. Business credit can be secured in a matter of weeks, giving you a competitive advantage in negotiations.
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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
1y
@Oj Brown, I may have some feasible options for you. Let’s connect.
[email protected]619-456-8311
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
This doesn't sound like that great of a deal to be honest.

what are taxes and insurance on the property ? what is the NOI - is the 140k rental income only or after all expenses
7e investments53 Reviews
Website View Page
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Oj Brown
OP
Member since 2021 · 20 posts · 9 votes
1y
The gross annual income is stated by the owners at 160 Airdna says 140 which is usually lower than reality. Taxes are 9K per year short term rental insurance not sure about cali in that location maybe 9K also or below and then there are cleaning fees/sundries and upkeep. If they payouts were split 80/20 the 20 should cover my part. With homeownership. Currently the airbnb listing has dark and amateur photos for an Airbnb I would expect a better number and improvement over all with bright lighting pro photos and as the years progress. I know the area been there a handful of times and grew up in the area and it is beyond beautiful location.
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Jeremy HoldenBusiness Member
Real Estate Agent · Scottsdale, AZ · Member since 2021 · 156 posts · 90 votes
1y
I have a deal similar to this in old town scottsdale that grosses over 200K / year. Feel free to hit me up
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- Scott E.
  Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
  1y
  Quote from @Jeremy Holden:
  
  I have a deal similar to this in old town scottsdale that grosses over 200K / year. Feel free to hit me up
  
  I've seen the same, specifically 5 bedroom new builds in the Southwest Village neighborhood. Although I agree with @Chris Seveney ... a deal like this on in CA doesn't pencil out if you're paying $2,000,000, financing most of it, and it only grosses $140k per year (even if you are self-managing)
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Oj Brown
OP
Member since 2021 · 20 posts · 9 votes
1y
Thanks for the reply, I appreciate it. When you want something to work the infinite will make it happen even if right now there is not a how in place the how will come.
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Kwanza P.
New to Real Estate · Bay Area California · Member since 2022 · 178 posts · 69 votes
1y
What town in Nor Cal? Have you investigated regs ?
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Oj Brown
OP
Member since 2021 · 20 posts · 9 votes
1y
Yes, it allowed but I notice no one charges a cleaning fee in town so fee would be need to be in the rent or other charges. I would need to obtain a TOT license It is a high tourist area on the coast.
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Givo Aghasi
Lender · Los Angeles, CA · Member since 2022 · 238 posts · 73 votes
1y
@Oj Brown I may have some options. Lets connect!
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