Vacation Home Financing

5 Replies

Hi, Posting on behalf of a friend. Three siblings inherited a vacation home in Martha's Vineyard. It is in a state of disrepair. They want to keep the property but have no cash. All three have poor credit too. They likely need 100k to get the place up to speed to rent it out. I suggested Prosper or some other peer to peer lending. Any ideas?

And should add it is worth conservatively $500k.

How is the ownership structured? LLC, partnership? or is it in their names?

If it is free and clear they should be able to leverage the equity somehow.

Is it uninhabitable?  If any one of them  is currently living there they may be able to take advantage of owner occupant programs before turning it to a rental.

Hi Colleen,

Property is in their names. None live close by so they can't say it is their home. Moving is not a viable option either.

I was told that you can't use the shower in there. Not sure if that is a minor fix or not. 

Hi Jean, Remember the challenges that Marthas Vneyard present to a remote owner. Being an island , renovation and maintainance costs will be substantially higher than the main land. 

@William, they might have a solution. But, they got it free so, they want to hold on. But, will be a challenge to manage especially since the closest sister is in NJ.

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