Financing a rental property

When purchasing real estate without intending to live in it personally, it falls into the category of an investment property. Financing can be more complex compared to obtaining a loan for your primary residence. Here's what you should keep in mind:

Renting out parts of your primary residence typically makes obtaining a new mortgage straightforward. However, if your property purchase is solely for generating income through short-term rentals, your lender options become more limited.

For real estate investment properties exclusively designated for short-term rentals, traditional residential lenders are unlikely to offer mortgage loans.

One potential solution to this challenge is to invest in a real estate property with at least two units.

Navigating this intricate landscape, where each lender has specific guidelines for calculating rental income, may be easier with advice from a mortgage professional experienced in handling loan applications involving both fixed-term and short-term rental income.