Rental Concessions

Landlords should not bear all the risk of another government shutdown, but tenants are being more aggressive about demanding pandemic language in new leases, this according to reporter Esther Fung’s article, Retail Landlords Offer Pandemic Clauses in New Leases, August 25, 2020 in

Covid-19 is persisting in many parts of the country and it is hard to tell what will happen now that schools begin to open and fall and winter approach. When the government ordered nonessential businesses to shut down due to the Covid-19 pandemic, many households lost their income and businesses lost their sales. Rents became hard to pay whether you were paying rent for your home or paying rent for your retail shop or office.

Photo by Gustavo Fring on

Previous force majeure language in lease contracts did not specifically mention “government mandated shutdowns in response to a global pandemic” under what was categorized as an “Act of God.”  Force majeure language in lease paperwork allows tenants to terminate leases or reduce rent in extraordinary circumstances.  However, the WSJ article cited above by Fung points out that “force majeure language in a lease hurts owners’ ability to get financing for the property.”

Landlords of both multifamily units and retail units have had to offer concessions to retain tenants and attract new ones. Philippe Lanier a principal for a property developer managing retail properties in Washington DC told Fung, that as a landlord, “You have to provide the tenant an easy decision. If you make it complicated, you’re not going to get this done.” Philippe Lanier, EastBanc

Percentage Concessions and Shorter Leases

What is a simple concession in a lease agreement? Lanier offered to cut the base rent by 50% if retail stores are forbidden to operate their businesses and this same concession could apply to an apartment tenant loses their job in a mandatory shut down. In Lanier’s agreement, the difference would be repaid in 6 equal installments that begin on the first day a business can reopen, or a tenant returns to work.

In Detroit, Bedrock, offered to waive base rents in return for 7% of gross sales for eligible tenants, which include restaurants and retailers. ( This company was also allowing the use of security deposits for other purposes.

Some investors are signing leases with shorter terms and that are more revocable by either party.

Photo by Bich Tran on

With rents taking a hit in large cities across the country it is hard to tell how long it will take an investor to make a profit on a rental property. Location still seems to matter, but the location may be in smaller towns and the suburbs near large cities rather than in the large metropolitan areas themselves.

Clear, simple language in a lease is best but the concessions themselves can be as creative as you are.

If you need funding, apply now. I am working online with the rest of you.

Patrick St. Cin

W – 512-213-2271

M – 505-239-3026

Vacation Rental Investment Property: Expenses

Summer is here and vacations are in the air.  Perhaps, it is also time to think about how we can pay for our vacation with income from an investment property purchased to rent. As we discussed yesterday, if you receive income from renting property for use as a dwelling, such as a house or apartment, you may need to report the income, and you may be able to deduct certain expenses. 

To make your tax life easier and less confusing for you, your tax preparer, and the tax authorities, be clear about your goals for the rental property.  Are you using the property partly for your own use and renting it out when you aren’t using it or are you operating it solely for a profit?  If you are using the property yourself and renting it, divide the portions of expenses between your investment and your personal tax forms based on days used or percentage used, and you will not run into tax trouble.

Types of Rental Expenses

In most cases expenses related to renting your property are deductible. These deductions can be applied against the income you receive from rent to lower the amount of the rental income that is subject to tax. These would general be reported on a form 1040.  According to the IRS, if you use the investment property to rent for a profit and do not use the dwelling as a residence, or for personal use, then your deductible rental expense may add up to more than your gross rental income. When you use the property for both personal and rental use, you will not be able to deduct rental expenses in excess of the gross rental income minus the rental portion of the mortgage interest, real estate taxes, casualty losses from federally declared disasters for the rented part, realtor’s fees, and advertising costs.

Deductible expenses include:

  • Advertising
  • Auto and travel expenses (if the primary purpose of the trip is to collect rent or to manage, conserve, and maintain your rental property)
  • Cleaning and maintenance
  • Realtor and Online Commissions
  • Depreciation: This expense begins when the property is rented or placed in service. It is taken over the lifetime of the property to cover the cost of the original purchase.
  • Insurance
  • Interest on loans other than the mortgage
  • Legal and other professional fees
  • Local transportation expenses (those incurred collecting rents, managing, conserving, or maintaining your property)
  • Management fees
  • Mortgage interest paid to banks, etc.
  • Mortgage expenses, including mortgage commissions, abstract fees, recording fees, are not deducted as expenses, but are considered part of the basis of your property as capital expenses and are depreciated.
  • Points. Points are prepaid interest and are deducted over the life of the loan and not all in the year the loan was made.
  • Pre-rental expenses: Expenses incurred maintaining your property from the time you make it available to rent
  • Rental payments for equipment
  • Rental payments for the property you lease
  • Repairs
  • Taxes
  • Utilities

Vacant Property

You can deduct expenses incurred maintaining and preserving your property when it is vacant, or vacant while listed for sale.

Uncollected Rent – Not Deductible

Don’t deduct uncollected rents. It is not included in your income, so it cannot be deducted.

Renting to Your Employer

If you rent part of your home to your employer and provide services for your employer in that rented space, report the rental income.  Claim the income and deduct the expense for that portion of the house. You can deduct mortgage interest, real estate taxes, casualty losses from federally declared disasters for the rented part of your home.

I would like to help you with funding for an investment rental property or vacation rental.  I have a long-term rental loan program that can help you get into an income-producing vacation rental investment property.

Please give me a call when you find that perfect real estate investment and know how much money you need.

Patrick St.Cin


IRS Publication 527 (2018) Residential Rental Property

IRS Tax topic 415 Renting Residential and Vacation Property

Image Credit, vacation rental, Seattle. Fred Ueckert, FJU Photography [CC BY-SA 4.0 (

Vacation Rental Investment Property: Income

Summer is here and our heads are full of vacation plans. Some of us rent summer vacation homes to stay in and some of us rent vacation homes out to others for income.

As a real estate investor, you may be considering buying a property to rent out for income or to remodel and resell. There are four points about income taxes that apply to rental properties that you should know about.

1.  If you rent the dwelling for fewer than 15 days a year, you do not have to report any of the rental income and cannot deduct any expenses as rental expenses.

2. If you receive income from renting property for use as a dwelling, such as a house or apartment, you will most likely need to report the income, and you may be able to deduct certain expenses.

3. The accounting method you choose to follow determines when you count income and deduct expenses.

4. Whether you use the property personally for vacations with your family and friends makes a big difference.

Accounting Method:

The accounting method you use determines when you claim income and deductible expenses.

Types of Rental Income:

Monthly rent is only one kind of income you may receive.  You may also receive rent in advance. You report monthly rent when you receive it. A tenant may pay you to cancel a lease. This income you report when you receive it. A tenant may pay some the expenses attributed to the rental dwelling (for example utilities). You declare the expenses paid as income. You can then deduct the expense if they are deductible rental expenses. A tenant may pay you with services (for example painting) or property (for example they construct a built-in grill). In this case you report the fair market value of the service or property as rental income.

Security deposits are not included in your income if you intend to return them to your tenant at the end of the lease. But, if you keep part or all of the deposit, include it as rental income in the year you receive it.  If a security deposit is used as the final month’s rent, include it as advanced rental income when you receive it.

Personal Use

According to the IRS, If you use the property for personal use 10% of the time or 14 days a year (whichever is greater) and rent it out at the fair market value for income, limitations apply on the rental expenses you can deduct. You will need to divide the expenses between the personal use and the rental income use based on the number of days of each. Of course for personal use, you will not receive income so there is nothing to report on the personal taxes. When you use the property for both personal and rental use, you will not be able to deduct rental expenses in excess of the gross rental income minus the rental portion of the mortgage interest, reals estate taxes, casualty losses from federally declared disasters for the rented part, realtor’s fees, and advertising costs.

One thing to note about personal use is that if you rent to a relative or friend for a token amount, less than the fair market value of a dwelling just like yours, you have to count this use as personal use, not as investment rental income use.

I have a long-term rental loan program that can provide funds for your real estate investment for the purpose of renting for income.

REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer short and long-term financing options.

Please give me a call when you find that perfect real estate investment and know how much money you need.

Patrick St.Cin


IRS Publication 527 (2018) Residential Rental Property

IRS Tax topic 415 Renting Residential and Vacation Property

Vacation rental Image in Florida. Jan Lieberman [CC BY-SA 3.0 (

Out-of-Doors Real Estate Investing

By 2024, the US Bureau of Labor Statistics employment projections program projects that there will be over 15,000,000 outdoor jobs in leisure and hospitality and almost 7,000 jobs in construction by the same year.

This statistic does not include the self-employed real estate investor, but it does tell us that there will continue to be a market for leisure and hospitality in the coming years. By that I mean vacation rentals and resort investments. If you crave fresh air, sunshine, and open spaces? Then the best thing to do is to craft your own job outdoors using your skills in investing, real estate, marketing, and hospitality.

Logically, the first outdoor work that comes to mind is the construction work required when you buy a property to fix-n-flip or fix-n-rent. You think of the remodeling, painting, deck building, landscaping, and the lifting, digging, and tugging that is required.

However, as a real estate investor, you can be a passive investor or an active investor, as active as you want to be. You can buy and operate a resort as an investment and as an occupation, one where you have rooms or cabins to rent out after they are remodeled, providing yourself with social opportunities and occasions to play out of doors.

Resort Ownership on the Water
Resort ownership on the ocean or a lake would give you opportunities rent property out for days or weeks and to spend time outdoors with your guests:
take your guest out on the water in a boat as a fishing guide
take your guests on a picture-taking tour around the lake shore
visit with guests around the community fire pit telling stories in the evening
rent out canoes, bikes, and games
teach guests to swim, kayak, water ski, or snorkel
be a life guard at your own pool
keep the grounds clean and mowed
provide your own landscape service.

Resort Ownership in the Woods
Resort ownership in the woods comes with the opportunity to rent cabins or rooms by the day or the week with time to spend outdoors with your guests:
guide trips for your guests fishing on nearby lakes or streams
lead float trips
lead hikes
teach conservation or outdoor cooking or snow skiing
prune trees
maintain trails
repair cabins

Dude Ranch or Hunting Resort Ownership
Dude ranch or hunting resort ownership would provide a different set of opportunities for the combination of vacation rental ownership and outdoor work:
take care of the animals on the ranch, horses and cows
breeding animals for sale or to increase your own herd
teach horseback riding,
guiding hunts or fishing trips
guiding horseback trips
building blinds and fences
build ponds
restore habitat in streams or forests
socialize with guests
being the grill master for guests’ meals.

An outdoor career has its pros and cons, among the pros are lots of fresh air and exercise that will keep you in shape. Among the cons are weather, schedules, and dangers. Many outdoor and leisure and hospitality workers are on the job early and work weekends and holidays. They may work all summer and be off most of the winter or work all winter and be off in the summer. You will most likely have to perform your tasks in heat, cold, rain, and wind. And, many outdoor jobs are physically demanding, requiring lifting, digging, and bending.

close up photo of man cooking meat

I am still focused on funding your success and I have more tools to work with. ILS built its reputation on finding private funding for investors for quick turn purchases and difficult situations. This is still true for REI Capital Resources.

Contact me at

A Family of Land Websites to Admire

I recently stumbled onto a family of fascinating websites for those of us who love land.   Whether you are interested in a vacation rental or garlic farming, solar farming or raising timber, hunting quail, or building a deer hunting preserve, this family of sites has much to offer those with land on their minds.

agriculture barn clouds cloudy

The first one I discovered was because I was thinking about investing in vacant or rural land.  Land Flip lists the best vacant and rural land available.  So, if you  are looking for hunting land with a cabin, 100 acres in Sierra Blanca, or a poultry farm in Arkansas.  This is the site to visit.  And it is a beautiful site with property descriptions and lots of gorgeous land photos in its galleries.

The sibling in the family is  Here is the site to go to if you are looking for commercial sites and land. Some of the same properties appeared here as on, like the poultry farm and the land in Sierra Blanca, but they were joined by industrial sites in New Jersey and housing sites in Northern Arizona.

The middle child in the family is, a site that features just what it promises, farms, but with much variety. Here you can find that horse farm in Wyoming, hobby farms, a working cattle ranch in Sabine County Texas, and timber tracts in Florida. is the next site, and it features upcoming auctions, including galleries showcasing fenced land in Kansas, residential development land for auction in Indiana, a home on 15 acres in Platte County, Missouri, and a log home and bed & breakfast lodge with 52+ acres in Houston being auctions on April 27th at 10 am. The property includes a barn, a shop, horse stalls, feed room, chicken coop, dog kennels, and 2 ponds. This could be an interesting investment for the right person.

If your dream involves commerce, hard work, and land, and if you are looking for a piece of urban or rural land to perform on, the not-so-little brother in the family of websites is the one to visit,  I think this site had my favorite unique commercial opportunity, a trading post with 34 cabins in Gunnison County, Colorado, right in the heart of the Rocky Mountains. As a kid, I always dreamed of my family owning a trading post of bar in the mountains.  This would have been the place.  The site also featured a gallery of other commercial opportunities, like a Lake Michigan vacation home, a river ranch with cabins in Missouri,  and a family restaurant and motel in Michigan.

Finally, the daddy and the mommy site of the family, as far as I am concerned, where you can learn all about land is This is where the blogs, articles, facts, and opinions live.  Here you find information to use and admire about topics like

  • the unique gourmet crops that will make money for a farm,
  • when to get into debt for land and when not to,
  • how to get a timber appraisal,
  • how to organize a community garden, and
  • how to clear land.

I am not sure but this might be my last post. I am off to plant garlic and willow trees.

Not really. But, I do recommend studying these websites for information and possible deals for your next investment, maybe a vacation rental.

Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.

Patrick St.Cin
W – 512-213-2271





ILS is Now REI Capital Resources

“Focused on Funding Your Success”

Formerly Investor’s Lending Source. New name, new products, same management

Hard Money Lending

REI Capital Resources is a funding source for SFR Fix-n-Flip, Fix-to-Rent, and Refinance projects as well as larger commercial projects such as office buildings, 5-40 door multi-family buildings, and many others.  These programs vary wide and far throughout the gamut of lending. Call or e-mail for more information.

Long-Term Rental Financing

REI Capital Resources is instrumental in finding conventional non-conforming lenders for investors using their business entities and, also non-entity, personal holdings, as a method to purchase, refinance, and cash-out of rental properties.  These loans are geared toward single-family residence properties with up to 4 doors for a given property.  Portfolio loans are also available. Earn money continually from your rental property. You can get there from here with a fix-to-rent loan.

Short-Term Rental (Vacation or AirBnB) Lending

As the lending industry adapts to the market place, REI Capital Resources is adapting too and is now able to provide funding for the short-term vacation rental market.

You Can Get There From Here

REI Capital Resources built its reputation on finding private funding for investors for quick turn purchases and difficult situations.  This is still true today.

Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.

Patrick St.Cin

W – 512-213-2271

4 Most Common Mistakes that Slow Down the Loan Process

Getting a property financed can be an overwhelming process. Sometimes borrowers don’t recognize the bumps in the road that will derail their project plans and loan schedule. Here is a list to help you see and remember the small, but important, details involved in getting a loan. These are the most common time sucking land mines that drag the loan process out (or even cause disqualification) along with tips to avoid them.

  1. Scheduling & Anticipating the Appraisal

Loans officially start when they are put into processing, which does not happen until appraisal reports are turned in or the application fee is paid. A loan will be delayed if there is an issue getting the appraisal. Sometimes a borrower will schedule an appraisal when the property is not available or repairs/rehab are incomplete. For example, someone may live in or on the property and will not allow the appraiser access to the property. The loan will be delayed if this happens. If the appraiser arrives and finds the home in the midst of rehab, the loan will also be delayed.

Another bump in the road related to the appraisal occurs when the value of the property is based on too little research. This usually leads to an inflated initial value. If the appraisal comes in lower than what the borrower expected, this will delay the loan process and can even halt it altogether.

Key: Be ready, careful, and deliberate about scheduling the appraisal. Coordinate with the current occupants and your contractor.

Key: Be really accurate from the start about the value of the property.

  1. Documentation

Procrastination, my favorite strategy, does not help when it comes to loan documentation; like taxes and even more than hearing protection, documentation is required. It is a terrible idea to wait to start gathering the documents necessary to move the loan process along until the appraisal comes in. Start by making a list of the documents you need as soon as you come up with your project and begin immediately, while the idea is hot, to gather them and check them off your list. Your goal is to have them ready as soon as your loan goes into processing.

Key: Gather the necessary documents when your idea is hot.


  1. Hazard: Wrong Policy Type or Amount

You might not think of hazard insurance in connection with your loan but obtaining hazard insurance is a very important component to securing a loan. Carefully study the types of coverage available and don’t just buy a policy to say you have it. Buy hazard insurance that covers 100% of the replacement cost of the property and calculate the premium carefully. Often the wrong type or amount of coverage is purchased, which will not only slow the loan down but can also potentially change your loan parameters (up to and including disqualification).

Key: Know your numbers. Buy hazard insurance that covers 100% of the replacement cost of your property

  1. Title Clouds

Liens, judgments, delinquent taxes, and mortgage releases are all common things that show up on a title. These things take time to clean up and drag the loan process out. Be sure to check your title for these attachments before you start your loan. If you have any clouds on the title, you’ll want to clean them up asap to keep your loan on schedule.

Key: Start early, Clean up the title ASAP.

Patience may be a virtue, but it is one that is often tested when you are eager to close a loan and get on with your project. To save your dream and your nerves, follow these tips: coordinate the appraisal, be accurate on the value, gather the necessary documents, buy the right insurance, and clean up that title.

I would be pleased to give you a hand, and I have funds available for lending.


Austin, Texas


Photo credit: Niklas Bildhauer CC BY-SA 2.0 (

How to Close Your Visio Loan Fast

Attention. Today, it is hard to focus the laser beam of our mind onto what is pivotal. Our mind certainly can be a laser beam, but too often it flickers, back and forth from one thing to another like a match in a wind storm. If time is money, attention is gold, and a sense of urgency can be your friend when you are interested in borrowing money to start your rental or vacation rental business.

My goal here is to help you sort out what Visio needs to know, what is pivotal in the process of financing an investment property, one that you want to buy and hold onto as an investment. By focusing on these critical areas, you can speed up and simplify the process of getting your loan Visio loan closed.

Pivot 1. Property Value beyond the Appraisal

Talk to your local realtor and do your own research to determine the comparable value of your property. Appraisals provide us with helpful indications of value, but we also rely heavily on our own research and analysis. Please let us know if you’ve made improvements to the home, detailing what has been done and the amounts invested.

Please let us know if you’ve made improvements to the home.

Pivot 2. Property Condition

Appraisers rate property condition using a scale of C1 (New) to C6 (Complete Redevelopment). We only lend on rent-ready properties (C1–C4). ALL repairs and rehab should be completed PRIOR to starting a loan with Visio. While we sometimes finance properties requiring some minor redevelopment, we make these decisions on a case-by-case basis. If you are concerned that your property may need too much work to qualify, send us some current pictures before ordering the appraisal.

We only lend on rent-ready properties (C1–C4).



Pivot 3. Recent Transactions

If the home has changed hands in rapid succession with significant increases in value, we need to know ahead of time. We need to understand the reasons behind the increase in value before making the loan. Finding out late in the transaction almost always causes problems.

We need to understand the reasons behind the increase in value before making the loan.

Pivot 4. Non-Arm-Length Transactions

A non-arms-length transaction involves a buyer and seller that have a pre-existing business, personal, or familial relationship. We will make these loans, but we want to know up front. Visio is not a consumer mortgage lender, and therefore cannot allow family of the borrower to remain in the property.

Visio is not a consumer mortgage lender, and therefore cannot allow family of the borrower to remain in the property.

Pivot 5. Fees

Our Account Executives will provide you with a detailed fee worksheet showing all our fees well in advance of closing. Please read the fee worksheet. It is not in anyone’s interests to have a deal fall apart at the closing table over fees.

Please read the fee worksheet.

Pivot 6. Title

If you are refinancing with Visio please give careful thought to any liens, judgments, or delinquent property taxes on the property. These will come up during the title phase, and they not only take time to clean-up but could also result in disqualification. If you’re buying a property, we require a clean title to close. Items such as releases of old mortgages or the existence of ground rents/land leases, which are common in some areas (MD), can take substantial time and effort to address.

We require a clean title to close.

Pivot 7. Borrower Name(s)

If you are refinancing with Visio, please consider whether there is anyone else on the title with you. That person will need to be available to sign documents. In addition, we will title the property the way it comes to us. If you are attempting to remove anyone from or add anyone to title, please resolve this prior to starting a loan with Visio (see “Borrowing in an Entity” below for exceptions). For purchases, if you are buying from a government agency, such as HUD, execute the purchase contract in the exact name in which you intend to hold the title. They are not very flexible about changing names mid-transaction.

Execute the purchase contract in the exact name in which you intend to hold the title.

Pivot 8. Investor Insurance

Research and choose your insurance product EARLY. It likely will take longer than you think. Consider the cost as well. If your premium is proven to be more expensive than you are estimating, it could potentially change your loan parameters, up to, and including disqualification. Accurate escrow estimation is paramount to an accurate quote from Visio. Please note, we require hazard insurance to have 100% replacement cost. We do not allow actual cash value policies.

We require hazard insurance to have 100% replacement cost.

Pivot 9. Borrowing in an Entity

We lend to entities, such as corporations, LLCs, and partnerships. Please make sure your entity is fully established and is in good standing. We’ll need all the documents to complete your loan. If you are attempting to change the titled entity, we can accommodate if the ownership interest is identical between both entities. (See “Borrower Name” above.) We do NOT lend to trusts nor non-profit corporations.

We do NOT lend to trusts nor non-profit corporations.  

Pivot 10. Sense of Urgency

Time and attention is always of the essence. Thoroughly read emails and respond to communication from your account executive and processor. We are always available to help and provide clarification to ensure a smooth transaction.

Thoroughly read emails and respond.

Give me a call or send an e-mail and I will help you to move quickly, get the best deal, and start making money sooner.


Austin, Texas


Photo reference: Lmatt123 [CC BY 3.0 (


The Media Room Must Have

Even though you might not be building or remodeling a 9,000-square-foot mansion in your next fix-n-flip or vacation rental property update, you might want to consider installing a multi-functional media room in the main part of the house you are working on. The WSJ article, “The New Mansion Must: A Media Room,” by Cecilie Rohwedder, says this multimedia room is the latest trend in home design and might include any number of huge flat screen TVs occupying the same space as a fireplace, picture windows, games tables, couches, and computer work stations, all situated a short walk from the refrigerator in the kitchen. This multifunctional room is making itself at home in the “open-concept” floorplan and replacing the dark, sound-proof basement home theatre.

Recessed and No Glare

Making multi-tasking all the more real, in some homes, this multifunctional room might include a bank of multiple recessed flat-screen TVs with anti-glare screens and hidden audio systems so a movie, a social media feed, the news, and a PowerPoint slide you are working on for your job can all be showing at the same time. There might also be large picture windows with automated shades that can be lowered to block out light.

Electrical Outlet Planning

To make all this convenient and easy on the eye, this will take some electrical outlet planning with your electrician before you start the project, even right up front when you are putting together your budget and loan request. (As cheap as flat-screen TVs have become, you might want to consider throwing in a few flat-screen TVs to make the remodeled house more sellable. The RV industry has started to do that.)

The wall where the flat screen or flat screens will appear would need an outlet behind the flat-screen TV (or TVs) so the cords don’t show. For the automated shades, you might want to put outlets along beams in the ceiling or high up on the walls next to the windows. If there is a fireplace in the room, you could plan outlets for either side of the mantel.

Visualizing that work, study, and socializing might also be going on in this room, outlets in the floor where a desk or game table might go will prevent cords from being stretched everywhere, and outlets a little above desk height in the corners will be handy for charging devices or plugging in computers, and you won’t have to crawl around on the floor to reach the plug ins.



Now that you are on the road to becoming your own media installation contractor, you might be interested to know that according to Admit One CEO Lance Anderson (interviewed in the WSJ article) the job of the media installation contractor is to “not be an ‘eye sore’ blackening someone else’s design.” You need to make the electronics behind the entertainment invisible. Jason Barth of Premier Group in Carmel, Indiana says, the media system should be experienced, not seen.”

If I can help you with a loan, please call.  I have funding for fix-n-flip projects.


Pat St. Cin


Austin, Texas


References: Rohwedder, C. “The New Mansion Must: A Media Room,” (2019) WSJ

It’s Business: People Want Short-Term Rentals

Great News For A Short-Term or Vacation Rental Property Business

No matter where you go, if you stay overnight, you need some place to sleep and shower. For dairy inspectors in 1915, the YMCA or the bus station might have been okay, but real hotels have been the mainstay choice for years now and the RV is good for the family that spends lots of time outdoors.

However, the online vacation marketplace has made it easy for travelers to search online for all sorts of alternative places to stay. You can look for condos, cabins, homes, and apartments in locations all over the world. This trend is good news for people who own vacation homes or second houses that they want to rent out. It is great news for people who want to build a short-term or vacation rental property business.

You might think that you have to live in Myrtle Beach or Hawaii to start a vacation rental property business. But this is not true. You can start a business right in your own town, right here in Texas.

Truly, these online vacation home marketplace sites have revolutionized the short-term rental business. They are a great tool for the rental property owner. Not only do they make it easy to advertise your property as far as the web can reach, but they also allow you to receive funds from buyers securely. A few of these vacation rental marketplace sites are listed here so you can check them out for ideas:

Air BnB:



There are many things to consider with any investment or any time you start a new business. Most of the time, you need a loan. To get a loan on a property, you need to know what property you want and how much you need to borrow. Here are a few tips to help you get started on your short-term rental property business plan.

The Property: “A superb location”

Be inspired and look for a property that you love and consider whether it is convenient to public transportation and/or has easy parking for private cars? Look for a single-family home or for a large house that has been converted into a triplex. One good way to start is to live on one floor, rent out one floor fulltime, and rent one as a short-term vacation rental. Remember that each floor or living space will need to have a separate means of access. You can consider doing the remodeling yourself to make a large home into a triplex. Construction funds should be included in the funds you need for your business loan.

Laws: “You can’t fight City Hall”

Check the zoning laws for the local government to make sure the community does not have rules against owners renting out homes or offering rooms or floors of their house for short-term rent. Do this before you buy. As they say in the neighborhood, “You can’t fight City Hall.” Well, you can, but it will be expensive, and you will probably lose. So, check the laws before you invest.

Furniture: “Very clean and inviting with a comfortable bed”

A long-term rental can be rented without furniture, but short-term rentals need to be furnished so you will get rave reviews on the online websites and earn repeat customers. Put these items into your plan and trim them from there depending on your funds.

You will need to have a washer and dryer available. If you are choosing the triplex, one in the basement might do, but stackable ones on each floor would be a real amenity and earn you the coveted, “They thought of everything to meet our needs.”

You will need a refrigerator, dishwasher, microwave, oven, and the latest HVAC system.

For the bedroom you will need a bed or beds, bedroom furniture, sheets, blankets, pillows, comforter, end tables, lamps, dressers, flat screen TV, hangars.

For the living room you will need another flat screen TV, at least one couch, easy chairs, reading lamps, book cases, and maybe a rug.

For the kitchen, table, chairs, silverware and dinnerware, coffeemaker, and cookware.

You can great prices at antique shops and thrift stores for furniture and decorating items like mirrors, pictures, book shelves. Some of the items you need, you will probably need to buy new, like the linens and the HVAC systems.

The Welcome Package: “They were great hosts”

Put together a welcome package. This package will tell renters about what amenities are offered in the space and in the town. Include useful information about public transportation and sites of interest.

Advertise: “It was so easy to find them.”

Advertise on as many vacation home marketplace sites as possible to get your name out there, get the reservations flowing, and start receiving funds securely. It is also a good idea to build and maintain a website.

Be Available: “They were the friendliest people”

It is very important that you available for emergencies and questions and if possible to check guests in. Take calls from interested parties and be friendly.


Build from One to Many

Grow. If you love the business and are making some money, be obsessive about it. When you can afford it, buy another property and enlarge your business.

Now that you are ready with a property and a plan, I can help you with a loan program to purchase your rental property. I am happy to announce that a loan program is now available to purchase rental property for the purpose of building your short-term or vacation rental property business. We have funds available for single-family residential property, condos (warrantable only), and ocean beach front property.

I would be pleased to have you call or e-mail too.


Pat St. Cin


Austin, Texas