Ways to Finance First Short Term Rental near Gatlinburg, TN

[Ethan Cole]

I am wanting to get into STR's near Gatlinburg. I have experience with LTR's, but this seems to be a different ballgame. The market I'm in has a significantly lower cost of entry, consequently it brings lower returns than a market like Gatlinburg. My biggest hurdle for moving quickly is the amount the down payment would need to buy to buy in this market. What are some creative ways you have used to come up with large sums of money quickly?

[Juan V Lopez]

Hey Ethan, I just wrapped up a STR in Big Bear with an investment loan (10% down). All together, I was about $40K at down payment. I renovated the property with funds from a previous refinance I did, and then refinanced out.

If you have equity in a property, a LOC would be a great source to get funds from. A lot of people are backing away from refi's right now because of increasing rates, but I'm always in the opinion that if the money you would be making is greater than the difference in your interest rate, you're better off pulling the trigger (and refinancing again later when rates come back down.

Wish you the best.