Financing an Airbnb with a HELOC from Figure
How to leverage home equity to finance an Airbnb
Are you an Airbnb host looking to take your hospitality venture to the next level? Tapping into your home equity is a smart way to get the greatest profit from your Airbnb vacation rental. In this article, we'll explore how hosts can leverage the power of their home equity to supercharge their Airbnb business and share the remarkable benefits of choosing a Home Equity Line of Credit from Figure.
Unlocking Your Airbnb's Potential
As an Airbnb host or owner, your property is not just a place to stay – it's an investment. Figure's HELOC empowers hosts to tap into their home equity and access substantial funds, allowing them to enhance their Airbnb property in ways they might have never thought possible. Whether renovating your space to create a more inviting atmosphere, adding luxurious amenities, or expanding the number of rooms available, this financial boost can help you offer your guests an even more exceptional experience.
Your Airbnb is more than a place to crash, it's an experience. And Figure's HELOC could help you take that experience to a whole new level. Imagine being able to renovate, expand, or enhance your space to create a jaw-dropping experience for your guests. With Figure's HELOC, it's not just about dollars – it's about turning your property into a destination.
Why choose a HELOC to fund your Airbnb?
A Home Equity Line of Credit offers many benefits over other sources of financing, such as credit cards and personal loans.Disclaimer1 Benefits include low interest rates and fast funding. Most importantly, a HELOC is a flexible way to borrow the money you need. HELOCs offer flexible repayment terms and have potential tax benefits when used for home improvements.
Low Interest Rates and Flexible Repayment
A HELOC is a type of second mortgage that is secured by your property. Because of this, lenders can offer much lower interest rates than those on unsecured loans such as credit cards, personal loans, and even home improvement loans.
Potential Tax Savings
Making upgrades and renovations is a great way to increase the return on investment from your short-term rental property. Using a HELOC to fund those projects could have the added benefit of savings on your tax obligations.Disclaimer2 Under the Tax Cut and Jobs Act (TCAJ), interest paid on a home equity credit line or home equity loan could be deducted from your taxes when used to "buy, build, or substantially improve" the property securing the credit line.
Simple and Swift Application Process
Time is of the essence, especially in the dynamic world of Airbnb. That's why Figure has streamlined the application process, making it possible for hosts to apply for a HELOC in as little as 5 minutes – all online. No need for lengthy paperwork or time-consuming visits to brick-and-mortar institutions. With just a few clicks, you can kick-start your journey towards securing the funds you need to transform your Airbnb property.
Rapid Funding for Timely Upgrades
When inspiration strikes or market trends shift, you must act quickly to stay ahead in the competitive Airbnb landscape. Figure understands this urgency and has designed its HELOC offering to provide funding in as few as 5 days.Disclaimer3 This means you can seize opportunities without delay, whether purchasing new furniture, upgrading appliances, or implementing changes based on guest feedback. With Figure, you're not just getting funds – you're getting the agility to make meaningful improvements at the right time.
Best Ways to Grow Your Airbnb
There are several ways Airbnb hosts can increase profits and grow on their investment property. Comparing your property to your competitors is a great way to decide if your investment is best spent on projects that range from improving the property and guest experience to increasing marketing initiatives.
Refreshing your space can attract more guests and earn rave reviews. Use your HELOC to fund a makeover – from stylish furniture and decor updates to modern amenities that set your property apart. A fresh, inviting atmosphere can lead to higher occupancy rates and glowing guest feedback.
Dreaming of adding an extra room or expanding your property's footprint? Your HELOC could be the foundation for such transformations. These additions can increase your property's value and guest capacity, whether it's a cozy attic bedroom or a relaxing garden oasis.
In the digital age, technology is a game-changer. Consider investing in smart home systems, keyless entry, or entertainment upgrades that provide convenience and wow factor to your guests. With a HELOC, you could fund these tech-savvy enhancements.
Create an unforgettable outdoor experience with a beautifully landscaped garden, a cozy fire pit area, or a charming patio where guests can unwind. Your HELOC could bring these outdoor dreams to life, making your property a sought-after destination.
Sustainability is a growing trend in the hospitality industry. Use your HELOC to invest in energy-efficient appliances, solar panels, or eco-friendly amenities. Not only will you attract eco-conscious travelers, but you'll also lower your property's long-term operational costs.
Consider catering to specific niches by incorporating unique amenities. Whether it's a private yoga studio, a mini home theater, or a pet-friendly setup, your HELOC can fuel these distinctive features that set your Airbnb apart from the rest.
Create themed spaces that transport your guests to different worlds – a beach paradise, a rustic cabin, or a minimalist oasis. Your HELOC could finance the design elements, furnishings, and decor needed to bring these captivating themes to life.
A picture is worth a thousand words, especially in the competitive Airbnb market. Use your HELOC to invest in professional photography that captures your property's essence, making it stand out and attract more bookings.
Marketing and Promotion:
Launching and promoting your Airbnb requires marketing efforts. Invest your HELOC funds in a solid marketing strategy, including social media campaigns, website optimization, and even collaborations with local influencers to boost your property's visibility.
If you're eyeing another property to add to your Airbnb portfolio, funds from your HELOC could be a substantial down payment. Acquiring another property could diversify your investment and potentially increase your rental income.
If you're an Airbnb host with big dreams for your property, Figure's Home Equity Line of Credit may be your ticket to turning those dreams into reality. With the ability to access up to $400,000Disclaimer4, a seamless online application process, and rapid funding, hosts can take their Airbnb business to new heights.
Remember, every Airbnb property is unique, and your goals may differ. A HELOC empowers you to turn your vision into reality, making your property more attractive to guests while potentially increasing your income and property value. Before diving in, consult with financial professionals to ensure that using a HELOC aligns with your financial strategy and goals.
Disclaimer 1A Figure HELOC is secured with your home as collateral, whereas personal loans and credit cards are not.
Disclaimer 2You should consult a tax advisor regarding the deductibility of interest and charges to your Figure Home Equity Line.
Disclaimer 3Approval may be granted in five minutes but is ultimately subject to verification of income and employment, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing.
Disclaimer 4Our loan amounts range from a minimum of $15,000 to a maximum of $400,000. For properties located in AK, the minimum loan amount is $25,001. Your maximum loan amount may be lower than $400,000, and will ultimately depend on your home value, lien position, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.