Short – Term Rental – Asheville, NC

The Opportunity

A borrower wanted to finance two properties used as short-term rentals in the mountains of Western North Carolina. One was a duplex inside the city center of Asheville, and the other was a mountain cabin closer to area ski slopes.

The investor had a solid strategy with cash flowing return, but ran into trouble finding a lender prepared to finance these rentals with short-term occupancy and DSCR in mind. After doing some research, they contacted Lima One for assistance.

The Solution

Lima One financed these two properties with two different kinds of loans—one with a 30-year loan on a 10-year ARM, and the other on a fixed-rate, fully amortizing 30-year loan. These two properties will produce cash flow, especially during the fall foliage and winter ski seasons that brings thousands of tourists to the area.

The borrower said the best part of the deal was the transparency that Lima One’s team provided, with regular updates on where the loan was in process. As a result, the borrower is looking to purchase another short-term rental soon and will rely on Lima One to finance it.