LOAN PROGRAMS

RCN Capital offers short-term and long-term financing options for real estate investors. Whether you or your clients are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that suit your needs.

Final loan terms may vary based on loan types, verification of application information, and other risk-based factors.

PARTNERS

RCN Capital values building strong partnerships with industry professionals because partnerships drive our success. Learn more about RCN Capital’s Wholesale Lending opportunities, including the Broker Referral Program and the Correspondent Lending Program.

ABOUT

RCN Capital is a nationwide private, direct lender. Established in 2010, we provide retail and wholesale lending options for short-term fix and flip financing, long-term DSCR financing, and ground-up construction financing for real estate investors.

Resources

RCN Capital provides a variety of resources that can help you on your lending journey. Find business partners that can help solve any investing problem, learn more about our processes and get answers to the most frequently asked questions.

The Different Types of Short-Term Rental Property


Short-term rental real estate has seen explosive growth in the past decade, and it’s no surprise considering how profitable of a venture it can be. If it’s done right, these properties can generate significantly more revenue than your average rental property. The key here though is “if it’s done right”; you won’t be turning a profit if you don’t know what you’re doing. It’s important to know that there are certain types of properties that renters look for, and you would be smart to have a plan including one of these types. In this post, we’re going to go over the different types of short-term rentals to help you decide which to go with for your next investment.

The Beach House/Lake House

At first, beach houses and lake houses may seem like different types of properties since they’re found in different locations. However, they behave very similarly when it comes to short-term rentals. These types of properties are seasonal, which means you’ll be seeing increased traffic in the summer season. You’ll also find that these properties perform better in warmer climates because of the nature of the rental: most people are looking to take a vacation somewhere warm with access to a body of water. If you want to buy one of these properties, keep in mind that the closer it is to the body of water the higher the demand will be. Beachfront and lakefront properties will definitely fetch higher prices for both purchases and nightly rates.

When it comes to maximizing the profit for these rentals, consider amenities that complement the property type. That means things like kayaks, pool floats, surfboards, and outdoor recreational items like balls or frisbees. You could even go the extra step and provide jet skis and small boats for your guests. Finally, if your property is in a warmer climate, you will definitely want to make sure the house is air-conditioned.

The Ski Cabin

Another type of rental property you will commonly see is a winter retreat or “ski cabin”. These properties are generally found in colder climates, and they’ll be in higher demand if they are close to a ski resort or include a scenic view. These rentals are also seasonal, seeing more traffic in the winter months. However, it’s important to note that just because a property is seasonal that doesn’t mean it won’t see any guests in the off-season. Certain folks could be looking for a weekend getaway even in the summer, and if your property is priced correctly it could be their choice of destination.

As for maximizing your revenue on this type of property, you should focus some attention on décor. You want to make it really feel like a cozy cabin retreat. First and foremost, that means you should look for a property that includes an indoor fireplace. You could also invest in holiday decorations like lights, mistletoe, and etc. but you should try to keep the decorations secular if possible. For amenities, you’ll want to include things like sleds and tubes, as well as extra blankets and board games for staying indoors. Finally, a hot tub is a very desirable feature on these properties, and investing in one could have great returns.

The Urban Rental

Properties near populated areas and cities can also be a great choice for short-term rental purposes. However, the cost to acquire and the potential rental income for these properties depend on a number of factors. For starters, the proximity of the rental to the city center (or other high-traffic areas of a city) can hugely impact prices. The size of the unit is a big factor as well, since space is not easy to come by in crowded cities. Maximizing the profit of these properties is simple: new or well-renovated units can be rented out for higher rates. You should also note that these types of properties can be rented for extended periods of time, which will bring in significant revenue. For example, someone could be looking for a place to stay while transitioning to a new job/home in the city.

The Residential Home

The last type of short-term rental we’ll go over is a very common type since it’s a home in a residential or sub-urban area. These properties are great because of their abundance, you’ll just need to find one that fits your needs and financial goals. Just like urban rentals, these properties may be rented for extended periods of time. For example, one recent trend in the industry involves purchasing homes near hospitals or other businesses in need of temporary/contract workers. In fact, residential homes are generally rented for longer periods than other types of short-term rental properties. That means they can be seen as a more stable stream of income, even if their nightly rate may be lower than the other types of properties mentioned.

RCN Capital

RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and vacation rental financing for real estate investors. If you’re looking to finance your next short-term rental property, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.