Buying a House Owner Finance & Airbnb'ing the Property

[Clayton Oakley]

Has anybody ever bought a property owner financed and then Airbnb'd the house? Not only would you pay for the mortgage but in a good Airbnb market, you could have some serious cash flow. Although owner finance properties do have higher interest rates, i understand the availability of money is sometimes more important than the cost. I'm thinking owner finance over a bank loan because I can buy multiple houses and it not show up on my credit unless I incur a foreclosure allowing me to leverage more of my money. I'm thinking about potentially doing this but want to get some feedback ... Thanks!

[Peter R.]

Yes we've done this a few times @Clayton Oakley we tend to buy the property on a 30 Year Amortization with a 7-10 year balloon which gives us more than enough time to refinance once the property is up and running with provable rent history.

Personal preference of the seller varies wildly, some want full asking but don't care about as high of an interest rate, some want higher interest and are willing to discount the list price.  

We've never had a problem getting them up and running.