Rental properties like Airbnbs can bring in a great deal of extra money to your household. While you may be excited to jump into the rental game, there are a few things that are important to know before purchasing your first property.
Banks are scrutinizing how properties are being used when it comes to writing new mortgages or even refinancing existing mortgages. Rental properties have historically been riskier loans for banks. Most banks will not even extend a line of credit on a property that is being used as an Airbnb rental. Although, there are instances a traditional loan will be approved for an Airbnb, it is not common at this time and a borrower will have to jump over red tape and then wait, what could be months, for approval.
Arizona Hard Money Loans have become popular routes for borrowers to follow in being approved for a vacation home mortgage. Arizona Hard Money Loans are hard asset based loans. Hard assets are usually real estate. With these loans, the lender is not worried about you monthly income or credit. Rather, they are concerned about your assets. In case of default, the lender may foreclose on your property. These loans have different terms than traditional loans, as they are meant to be short-term loans for up to 5 years. However, a borrower may refinance with a traditional institution when the term limits expire if needed. There are many options when it comes to Arizona Hard Money Loans.
An Airbnb can bring a generous amount of annual income to your family. It is imperative that you do your homework before speaking with a lender.
The top 10 cities to own an Airbnb:
1. Asheville, NC
2. Portland, OR
3. St. Louis, MO
4. Nashville, TN
5. Phoenix, AZ
6. Denver, CO
7. Austin, TX
8. Charleston, SC
9. Dallas, TX
10. San Antonio, TX
Do you live in any of these cities? If so—get yourself with a lender and start generating more income!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.