Question: BRRR but with a "V" in there for "Vacation" Rental?
HELP?
The following questions are related to the BRRR strategy, but in a market where it makes much more sense to AirBnB than longterm rent.
Any insights would be appreciated, or if you know of another thread that's covered the topic, I'd like very much for you to redirect me that way. I've heard on the podcast and read about a number of examples of the BRRR strategy, but helping out a friend with this particular situation would be the first time for the rubber to hit the road for me. Thanks for any suggestions you might have!
THE STORY
A friend I grew up with is killing it on AirBnB. The banks he's talked to aren't willing to consider the AirBnB income in his attempts to get a a mortgage on another property.
Managing the property himself on AirBnB, he's grossing $45K this year. He paid around $180K (FHA Loan) for the home about four-ish years ago. As a longterm rental, he'd be earning closer to $18K in his market. As long as he can manage it, it doesn't make sense to longterm rent it.
The property has appreciated with the rebound from the recession, and is now worth over $300K.
THE QUESTIONS
So, if banks don't like the idea of refinancing a property that doesn't have a longterm lease on it, and they're not willing to recognize the AirBnB income, what do you do? Is he talking to the wrong banks? Is he talking to the banks in the wrong way? What specifically should he say to get a bank onboard with refinancing, allowing him to pull out some of the appreciation, while not losing out on the AirBnB victory?
Thanks again for your help, and again, I'm new to the forum, so if you know of a thread that's already been created, please tag me!