If you’re a new Airbnb short term vacation rental investor, this is especially the post for you. One thing I notice in working with potential buyers of these properties is that they don’t fully understand the debt load and loan process to purchase one of these things, especially when they don’t have the full funds to purchase the property outright in cash. Typically, when you purchase an Airbnb or any type of investment property on loan, you’re going to need an average 25% down payment on the property just to start. Most people forget that bit and assume a 10% down will cut it. Not on most loans or programs when you have a loan on your current home. A second-home mortgage loan is a bit different and requires more collateral out of pocket. This should be your first step: preapproval for a second property of investment, and not FHA which violates their rules of the program. Your second step will be to get the cash for the down payment. It’s critical to get it in the bank to show proof of funds and avoid falling out of escrow. In this fierce market, you’ll lose out on the house by then!

Get your first two steps done and ready so when you do make an offer, it’s solid and valid to the current owner. Winning the offer bid does nothing if you can’t back it up with the money and lender approval. Get those two things done first. When you have, move on to the next post.

Where do you start? You talk to a good lender. I use my lender Mark from Prime Lending for this and he is local to the area as well. If you want to get in touch with him, leave me a voicemail or text message with your information to get back to you. 760-625-6836. If you’re an agent or was referred here by one, leave the agent contact info as well for referral fees and callbacks. Can you also do me a favor? When you call, let me know you saw this site and got the information from here. Thanks!