Cabin Financing/Rental
I have run across a opportunity to purchase a rare piece of property in northern Minnesota on a very popular body of water. It has small cabin that I know I could probably rent out year round to Ice fisherman/Campers etc. on a week, weekend/daily basis. I could add on to it as well make another bedroom or two. I see lots of potential for appreciation. As long as I could make enough to cover the payments, I am ok with that.
Anyone had experience with buying a cabin and renting it out?
What kinda of loan (LTV)could I expect to get (No doc) and how could/would I set it up as far as renting it out on a weekend/week/daily basis?
What about insurance?
Any thoughts?
Thanks in advance.
HBG[ Edited by HouseBuyerGuy on Date 12/18/2003 ]
Cabins should finance similar to stick built homes – at least that is my experience here in North Carolina. The appraisals just have to include comparative sales of other cabins.
Even on a NO DOC loan you should with good credit be able to get 80%- 90% LTV at a decent rate.
Just remember you are probably looking at a NO DOC loan on an investment property - that is sort of like 3 strikes against ya!!
If you are looking to rent on a weekly or short term basis look at this website I have some clients who use them successfully - keep cabins in Western North Carolina rented all the time on weekly a weekend rentals.
www.vrbo.com
There are other good sites as well.
Good Luck --