This week’s question comes from Xavier through Ashley’s Instagram direct messages. Xavier is asking: Can I use an FHA loan for a vacation rental? What’s the best way to scale without paying high down payments?
Xavier brings up a great question that many rookies have been asking. We all know we can get a conventional loan with very low down payment requirements for an owner-occupied investment like a house hack, but what about a vacation rental? Before you bombard your mortgage lender with questions, listen to what Tony (short-term rental expert) has been using for his vacation rental financing.
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Ashley Kehr:
This is Real Estate Rookie, episode 156. My name is Ashley Kehr and I am here with my co-host Tony Robinson for another rookie reply.
Tony Robinson:
And welcome to the Real Estate Rookie podcast, where every week, twice a week, we bring you the motivation, the inspiration and we answer your questions about getting started in the world of real estate investing. So, whether you’re a rookie, whether you’re seasoned, we hope you get some value from today’s show and every show that we put out.
Ashley Kehr:
So Tony, what’s new with you today?
Tony Robinson:
Things are actually going pretty good. We’re off to a pretty good start for the new year. We’ve got two different rehabs that are in progress right now. Well, technically three, one’s down, but we’re waiting to sell. Anyway, we’ve got two that are like in the middle of being rehabbed, and I’m super excited for how those ones are going to turn out. One of them is so nice that we’re almost contemplating not selling it because we’re so emotionally now invested into this property. So, that’s going well. And then I actually just submitted an LOI today on a 33 unit motel. So, we’ll see how that one turns out.
Ashley…