Short-Term & Vacation Rental Discussions

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Julie Darrow
  • Rental Property Investor
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Pulling Equity From Cash Purchase

Julie Darrow
  • Rental Property Investor
Posted Jan 18 2022, 13:05

Hi! My husband and I recently purchased bare land and have started construction for 6 tiny home short term rentals. We already have the electric in, have placed the 6 tiny homes on pads and are working on the septic and well. We paid for the land and all construction to date and tiny homes in cash. We have some hefty construction bills to finish the property with intentions of starting the rentals end of May/early June 2022. We would like to make sure we keep an emergency fund on hand and in doing so would like to get a loan/line of credit/pull equity to close the gap. Since we paid for everything in cash, we cannot refinance to pull the equity out but I know there must be a creative way to pitch this to the local banks or get ideas from this incredible group on how to best do this. Our area is sold out every summer in housing and we know these will be booked immediately once posted. We are expecting to charge $250/300 per night x 6 cabins. 

I started communication with a small local bank about creating a lending strategy on the land and they are open but not very versed in the idea. Help and creative ideas are greatly appreciated.

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