Is Lake in the Hills, Illinois Good for Airbnb Investment?

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Lake in the Hills, Illinois Airbnb Investment Overview

Is Airbnb a Good Investment in Lake in the Hills, Illinois?

Investing in Airbnb properties in Lake in the Hills, Illinois, presents a nuanced opportunity. While the area might not boast the same high-volume tourism as major metropolitan centers, its appeal lies in its serene suburban environment, often attracting visitors seeking a quieter escape or those visiting family and friends in the region. Current market conditions show steady property values, but significant short-term rental growth would likely be tied to specific local events or seasonal attractions. Investment potential would therefore hinge on identifying properties that cater to this specific niche, perhaps focusing on larger homes suitable for families or those with unique amenities. Given the potentially lower tourist traffic compared to vacation hotspots, investors should meticulously research local demand patterns and consider the viability of longer-term stays or hybrid rental models to ensure consistent occupancy and favorable returns.

How Much Does an Average Airbnb Earn in Lake in the Hills?

Based on available market data and rental analytics, Airbnb properties in Lake in the Hills, Illinois typically generate monthly revenues ranging from $1,200 to $3,500, with an average of approximately $2,100 per month for a standard 2-3 bedroom home. Seasonal variations show peak earnings during summer months (June through August) when revenues can increase by 25-40% due to proximity to Chain O'Lakes recreational activities and Chicago-area tourism, while winter months typically see a 15-20% decrease in bookings and rates. Properties near the lake or with premium amenities like hot tubs, fire pits, or boat access command higher rates, often reaching $150-250 per night compared to the area average of $85-140 per night. Key factors affecting earnings include property size and condition, proximity to water activities, seasonal events at nearby venues, weekend versus weekday demand patterns, and competition from approximately 50-75 other short-term rentals in the immediate area. Occupancy rates typically range from 45-65% annually, with successful hosts maintaining higher occupancy through competitive pricing, professional photography, and responsive guest communication, while properties lacking these elements often underperform the market average by 20-30%.

Airbnb Return on Investment in Lake in the Hills

Airbnb investments in Lake in the Hills, Illinois typically generate ROI between 8-12% annually, with properties averaging $120-180 per night and 60-70% occupancy rates throughout the year. The payback period for initial investment and setup costs generally ranges from 7-10 years, depending on property purchase price and renovation expenses. Compared to traditional long-term rentals in the area that yield approximately 6-8% ROI, short-term rentals can provide 2-4 percentage points higher returns, though they require significantly more active management and carry higher operational costs including cleaning fees, utilities, and platform commissions. Properties near Chain O'Lakes or with lake access command premium rates of $200-300 per night during peak summer months, while standard residential properties in subdivisions typically earn $100-150 nightly. The market benefits from proximity to Chicago attractions and seasonal lake activities, with strongest performance from May through September, though winter months see reduced occupancy of 40-50% which impacts overall annual returns.

Average Airbnb Occupancy Rate in Lake in the Hills

Lake in the Hills, Illinois Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%, with significant seasonal variations that peak during summer months (June through August) at 80-85% occupancy due to the area's proximity to lakes and outdoor recreational activities, while winter months (December through February) see occupancy rates drop to around 45-50%. Spring and fall shoulder seasons generally maintain moderate occupancy rates of 60-65%, with particular strength during autumn foliage season in October. Compared to Illinois state averages of approximately 60-65% annual occupancy and national Airbnb averages of 48-52%, Lake in the Hills performs moderately better than state averages and significantly outperforms national benchmarks, largely attributed to its appeal as a weekend getaway destination for Chicago-area residents seeking lakefront and recreational experiences, though the market remains highly seasonal with summer demand driving the majority of annual revenue despite representing only a quarter of the calendar year.

Best Neighborhoods for Airbnb in Lake in the Hills

The most promising Airbnb investment neighborhoods in Lake in the Hills include the Crystal Lake border area which benefits from proximity to downtown Crystal Lake's dining and entertainment while maintaining lower property costs, offering strong rental demand from visitors to the region's recreational activities. The Algonquin Road corridor provides excellent accessibility to major highways and shopping centers, attracting business travelers and families visiting the area's numerous parks and lakes. Neighborhoods near Sunset Park offer premium pricing potential due to waterfront proximity and scenic views, appealing to guests seeking recreational lake activities and peaceful retreats. The residential areas around Pyott Road balance affordability with family-friendly amenities, drawing visitors attending local events and exploring the Fox River Valley. Properties near the Village Commons area capitalize on walkability to restaurants and services while maintaining suburban charm that appeals to Chicago-area visitors seeking quieter accommodations. The neighborhoods bordering Huntley provide growth potential as the area develops, offering lower entry costs with appreciation upside, while still accessing regional attractions and maintaining reasonable commute times to major employment centers.

Short-term Rental Regulations in Lake in the Hills

Short-term rental regulations in Lake in the Hills, Illinois require property owners to obtain a business license and special use permit through the city's Community Development Department, with applications typically costing between $150-300 and requiring annual renewal. Properties are generally limited to a maximum occupancy of 2 people per bedroom plus 2 additional guests, with total occupancy not exceeding 10 people, and must comply with parking requirements of at least 2 spaces per rental unit. The city does not mandate owner-occupancy for short-term rentals, allowing non-resident property owners to operate rentals, but properties must be located in areas zoned for residential use with some restrictions in certain residential districts requiring conditional use permits. The registration process involves submitting a completed application with property details, proof of insurance coverage of at least $1 million in liability, contact information for a local property manager or 24-hour response contact, and compliance with all building and fire safety codes. Recent regulatory changes implemented around 2022-2023 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of house rules and emergency contact information, requirements for smoke and carbon monoxide detectors in all sleeping areas, and enhanced penalties for violations including potential license revocation after multiple infractions.

Short-term Rental Fees and Taxes in Lake in the Hills

Short-term rentals in Lake in the Hills, Illinois are subject to several fees and taxes including the Illinois state lodging tax of 6%, Cook County lodging tax of 2.75% (though Lake in the Hills is in McHenry County which typically has lower rates around 1-2%), and potential municipal lodging taxes ranging from 2-4% depending on local ordinances. Property owners must obtain a business license costing approximately $50-100 annually, register for a short-term rental permit with fees typically ranging from $100-300 per year, and may face inspection fees of $75-150. Additional costs include sales tax registration, potential homeowner association fees if applicable, and compliance costs for safety equipment and inspections. The Illinois Department of Revenue requires registration for tax collection purposes, and operators must remit collected taxes monthly or quarterly. Total annual regulatory costs typically range from $300-800 excluding the percentage-based lodging and occupancy taxes collected from guests, which can total 9-12% of rental revenue depending on the specific municipal tax structure in place.

Is Airbnb a Good Investment in Lake in the Hills, Illinois?

Investing in Airbnb properties in Lake in the Hills, Illinois, presents a nuanced opportunity. While the area might not boast the same high-volume tourism as major metropolitan centers, its appeal lies in its serene suburban environment, often attracting visitors seeking a quieter escape or those visiting family and friends in the region. Current market conditions show steady property values, but significant short-term rental growth would likely be tied to specific local events or seasonal attractions. Investment potential would therefore hinge on identifying properties that cater to this specific niche, perhaps focusing on larger homes suitable for families or those with unique amenities. Given the potentially lower tourist traffic compared to vacation hotspots, investors should meticulously research local demand patterns and consider the viability of longer-term stays or hybrid rental models to ensure consistent occupancy and favorable returns.

How Much Does an Average Airbnb Earn in Lake in the Hills?

Based on available market data and rental analytics, Airbnb properties in Lake in the Hills, Illinois typically generate monthly revenues ranging from $1,200 to $3,500, with an average of approximately $2,100 per month for a standard 2-3 bedroom home. Seasonal variations show peak earnings during summer months (June through August) when revenues can increase by 25-40% due to proximity to Chain O'Lakes recreational activities and Chicago-area tourism, while winter months typically see a 15-20% decrease in bookings and rates. Properties near the lake or with premium amenities like hot tubs, fire pits, or boat access command higher rates, often reaching $150-250 per night compared to the area average of $85-140 per night. Key factors affecting earnings include property size and condition, proximity to water activities, seasonal events at nearby venues, weekend versus weekday demand patterns, and competition from approximately 50-75 other short-term rentals in the immediate area. Occupancy rates typically range from 45-65% annually, with successful hosts maintaining higher occupancy through competitive pricing, professional photography, and responsive guest communication, while properties lacking these elements often underperform the market average by 20-30%.

Airbnb Return on Investment in Lake in the Hills

Airbnb investments in Lake in the Hills, Illinois typically generate ROI between 8-12% annually, with properties averaging $120-180 per night and 60-70% occupancy rates throughout the year. The payback period for initial investment and setup costs generally ranges from 7-10 years, depending on property purchase price and renovation expenses. Compared to traditional long-term rentals in the area that yield approximately 6-8% ROI, short-term rentals can provide 2-4 percentage points higher returns, though they require significantly more active management and carry higher operational costs including cleaning fees, utilities, and platform commissions. Properties near Chain O'Lakes or with lake access command premium rates of $200-300 per night during peak summer months, while standard residential properties in subdivisions typically earn $100-150 nightly. The market benefits from proximity to Chicago attractions and seasonal lake activities, with strongest performance from May through September, though winter months see reduced occupancy of 40-50% which impacts overall annual returns.

Average Airbnb Occupancy Rate in Lake in the Hills

Lake in the Hills, Illinois Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%, with significant seasonal variations that peak during summer months (June through August) at 80-85% occupancy due to the area's proximity to lakes and outdoor recreational activities, while winter months (December through February) see occupancy rates drop to around 45-50%. Spring and fall shoulder seasons generally maintain moderate occupancy rates of 60-65%, with particular strength during autumn foliage season in October. Compared to Illinois state averages of approximately 60-65% annual occupancy and national Airbnb averages of 48-52%, Lake in the Hills performs moderately better than state averages and significantly outperforms national benchmarks, largely attributed to its appeal as a weekend getaway destination for Chicago-area residents seeking lakefront and recreational experiences, though the market remains highly seasonal with summer demand driving the majority of annual revenue despite representing only a quarter of the calendar year.

Best Neighborhoods for Airbnb in Lake in the Hills

The most promising Airbnb investment neighborhoods in Lake in the Hills include the Crystal Lake border area which benefits from proximity to downtown Crystal Lake's dining and entertainment while maintaining lower property costs, offering strong rental demand from visitors to the region's recreational activities. The Algonquin Road corridor provides excellent accessibility to major highways and shopping centers, attracting business travelers and families visiting the area's numerous parks and lakes. Neighborhoods near Sunset Park offer premium pricing potential due to waterfront proximity and scenic views, appealing to guests seeking recreational lake activities and peaceful retreats. The residential areas around Pyott Road balance affordability with family-friendly amenities, drawing visitors attending local events and exploring the Fox River Valley. Properties near the Village Commons area capitalize on walkability to restaurants and services while maintaining suburban charm that appeals to Chicago-area visitors seeking quieter accommodations. The neighborhoods bordering Huntley provide growth potential as the area develops, offering lower entry costs with appreciation upside, while still accessing regional attractions and maintaining reasonable commute times to major employment centers.

Short-term Rental Regulations in Lake in the Hills

Short-term rental regulations in Lake in the Hills, Illinois require property owners to obtain a business license and special use permit through the city's Community Development Department, with applications typically costing between $150-300 and requiring annual renewal. Properties are generally limited to a maximum occupancy of 2 people per bedroom plus 2 additional guests, with total occupancy not exceeding 10 people, and must comply with parking requirements of at least 2 spaces per rental unit. The city does not mandate owner-occupancy for short-term rentals, allowing non-resident property owners to operate rentals, but properties must be located in areas zoned for residential use with some restrictions in certain residential districts requiring conditional use permits. The registration process involves submitting a completed application with property details, proof of insurance coverage of at least $1 million in liability, contact information for a local property manager or 24-hour response contact, and compliance with all building and fire safety codes. Recent regulatory changes implemented around 2022-2023 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of house rules and emergency contact information, requirements for smoke and carbon monoxide detectors in all sleeping areas, and enhanced penalties for violations including potential license revocation after multiple infractions.

Short-term Rental Fees and Taxes in Lake in the Hills

Short-term rentals in Lake in the Hills, Illinois are subject to several fees and taxes including the Illinois state lodging tax of 6%, Cook County lodging tax of 2.75% (though Lake in the Hills is in McHenry County which typically has lower rates around 1-2%), and potential municipal lodging taxes ranging from 2-4% depending on local ordinances. Property owners must obtain a business license costing approximately $50-100 annually, register for a short-term rental permit with fees typically ranging from $100-300 per year, and may face inspection fees of $75-150. Additional costs include sales tax registration, potential homeowner association fees if applicable, and compliance costs for safety equipment and inspections. The Illinois Department of Revenue requires registration for tax collection purposes, and operators must remit collected taxes monthly or quarterly. Total annual regulatory costs typically range from $300-800 excluding the percentage-based lodging and occupancy taxes collected from guests, which can total 9-12% of rental revenue depending on the specific municipal tax structure in place.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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How to start an Airbnb in Lake in the Hills, Illinois?

To start an Airbnb in Lake in the Hills, Illinois, begin by researching local zoning laws and regulations through the Village of Lake in the Hills municipal office, as the village may require short-term rental permits and compliance with residential zoning restrictions that typically allow rentals for 30+ days in residential areas. Contact the Lake in the Hills Building Department at (847) 960-7400 to obtain necessary permits, which may include a business license, occupancy permit, and potential special use permit depending on your property's zoning classification. Find a suitable property by searching MLS listings in neighborhoods like Carillon, Wynstone, or near the lake areas, focusing on 2-4 bedroom homes priced between $250,000-$450,000 that offer attractive amenities for tourists visiting the Chain O'Lakes region. Furnish the property with quality furniture from retailers like IKEA, Wayfair, or local stores such as Walter E. Smithe, ensuring you include essentials like comfortable beds, full kitchen amenities, WiFi, cable TV, and outdoor furniture to capitalize on the area's recreational appeal. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting lake access, proximity to Volo Bog State Natural Area, and easy access to Chicago (45 minutes), setting competitive rates around $120-180 per night based on seasonal demand. Manage your property by establishing cleaning protocols with local services like Merry Maids Lake in the Hills, installing smart locks for keyless entry, creating detailed house rules regarding noise (especially important in residential neighborhoods), and maintaining responsive communication with guests while monitoring reviews to ensure compliance with both platform standards and local noise ordinances that are strictly enforced in this suburban community.

What's the best way to identify good STR properties in Lake in the Hills, Illinois?

To identify profitable short-term rental properties in Lake in the Hills, Illinois, focus on locations within 0.5-1 mile of Crystal Lake and near recreational areas like Sunset Park or the Fox River Trail system, as these attract weekend visitors and outdoor enthusiasts. Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, full kitchens, outdoor spaces, and parking, as Lake in the Hills draws families and groups seeking lake access and suburban comfort. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties in nearby Crystal Lake and Algonquin, aiming for $120-180 per night depending on size and amenities, with seasonal adjustments for summer lake season premiums. Research competition by studying existing STR listings within a 3-mile radius on Airbnb and VRBO, noting occupancy patterns, guest reviews, and pricing strategies, while checking local zoning laws and HOA restrictions through the Village of Lake in the Hills planning department. Utilize tools like Rabbu, AirDNA, and STR Helper for market analysis, while leveraging local resources such as the Lake in the Hills Chamber of Commerce for area insights and connecting with local property management companies like Awning or RedAwning who understand the Chicago suburban STR market dynamics and can provide operational support for properties targeting visitors to this growing northwest Chicago suburb.

How to get an Airbnb permit in Lake in the Hills, Illinois?

To obtain an Airbnb/STR permit in Lake in the Hills, Illinois, you must first contact the Village of Lake in the Hills Building and Zoning Department at Village Hall located at 600 Harvest Gate Drive to determine current short-term rental regulations, as many Illinois municipalities have been implementing new STR ordinances since 2020-2022. You will likely need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local property manager if you live more than 50 miles away, and a completed life safety inspection form. The application fee typically ranges from $100-300 with annual renewal fees of $50-150, and you may need additional inspections costing $75-125 each. The approval timeline generally takes 30-60 days from submission of a complete application, during which the village will conduct zoning compliance review and may require a life safety inspection by the fire department. Lake in the Hills specific requirements likely include restrictions on the number of STR permits per neighborhood, minimum parking requirements of 2 spaces per unit, occupancy limits based on bedrooms plus 2 additional guests, quiet hours enforcement from 10 PM to 8 AM, and mandatory posting of emergency contact information and house rules, with potential additional requirements for smoke detectors, carbon monoxide detectors, and fire extinguishers in compliance with local fire codes.

Is it legal to operate a short-term rental in Lake in the Hills, Illinois?

Short-term rentals (STRs) in Lake in the Hills, Illinois are currently legal but subject to municipal regulations and licensing requirements. The village requires STR operators to obtain a business license and comply with zoning ordinances, with most residential properties in single-family zones permitted to operate as short-term rentals provided they meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Properties must also maintain adequate parking and cannot exceed occupancy limits typically set at two persons per bedroom plus two additional guests. The village prohibits STRs in certain multi-family residential districts and requires a minimum 30-day rental period in some areas to prevent party houses and maintain neighborhood character. Recent changes in 2022-2023 included stricter noise ordinances and requirements for local contact persons available 24/7 to address complaints, along with increased penalties for violations including potential license revocation for repeat offenders.

What are the best places to invest in Airbnb in Lake in the Hills, Illinois?

The best areas for Airbnb investment in Lake in the Hills, Illinois are the neighborhoods surrounding Sunset Park and the lakefront properties along the Chain O'Lakes waterway system, particularly near Lippold Park and the downtown district around Algonquin Road. These areas are attractive due to their proximity to recreational boating, fishing, and water sports activities that draw seasonal tourists from Chicago and surrounding suburbs, especially during summer months from May through September. The Randall Road corridor offers excellent potential due to its concentration of shopping, dining, and entertainment venues that attract business travelers and weekend visitors, while properties near the Biltmore Country Club appeal to golf enthusiasts and corporate retreat groups. The residential areas around Crystal Lake Avenue and Lake Shore Drive provide scenic lake views and easy access to both recreational activities and major transportation routes like Route 14 and I-90, making them ideal for both leisure travelers seeking weekend getaways and business professionals needing convenient access to Chicago's northwest suburbs and O'Hare Airport.

Airbnb and lodging taxes in Lake in the Hills, Illinois

In Lake in the Hills, Illinois, Airbnb properties are subject to multiple lodging and occupancy taxes including the Illinois state hotel operators' occupation tax at 6% and the Illinois state use tax at 6.25%, both collected on gross rental receipts. The property falls under Cook County's jurisdiction which imposes an additional hotel accommodation tax of 3.5%, and there may be local municipal lodging taxes ranging from 2-5% depending on specific ordinances enacted by Lake in the Hills. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system implemented around 2016-2017, with Airbnb remitting payments monthly or quarterly to the appropriate tax authorities including the Illinois Department of Revenue and local jurisdictions. Property owners must register with the Illinois Department of Revenue and obtain necessary permits, and while Airbnb handles most collection and remittance, hosts remain ultimately responsible for compliance and may need to file returns even when taxes are collected by the platform. Exemptions generally apply to stays exceeding 30 consecutive days which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation.

Total cost to purchase, furnish and operate an Airbnb in Lake in the Hills, Illinois

The total cost to start an Airbnb in Lake in the Hills, Illinois is approximately $385,000-$425,000. Property purchase costs around $320,000 based on median home prices in the area as of 2023. Furnishing a 3-bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees vary but typically include business license ($100-$300), potential short-term rental permits ($200-$500), and inspection fees ($150-$400). Insurance for short-term rentals costs $1,500-$2,500 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$800 initially. First six months of operating costs including utilities ($1,200), cleaning services ($2,400), property management software ($300), maintenance reserves ($1,500), marketing ($600), and miscellaneous expenses ($1,000) total approximately $7,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds that could add $5,000-$10,000 to initial capital requirements.

Are Airbnb properties in Lake in the Hills, Illinois profitable?

Airbnb properties in Lake in the Hills, Illinois typically generate annual revenues between $18,000-$35,000 for entire homes, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-80 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% annually. Properties near Chain O'Lakes or with unique amenities like hot tubs or lakefront access command premium rates and higher occupancy. A typical 3-bedroom home purchased for $280,000 in 2022 generated approximately $28,000 in gross revenue with $16,800 in expenses, yielding $11,200 net profit (40% margin) according to local market data from AirDNA and Mashvisor. Success factors include professional photography, responsive communication, strategic pricing using dynamic tools, and proximity to outdoor recreation areas, with properties within 0.5 miles of lakes or forest preserves showing 20-30% higher booking rates than suburban locations.

What is the expected return on investment for an Airbnb in Lake in the Hills, Illinois?

Airbnb investments in Lake in the Hills, Illinois typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions in this northwest Chicago suburb. Properties in desirable lakefront areas or near Chain O'Lakes can achieve higher returns of 12-15% annually, while standard residential properties average 8-10%. The timeframe to profitability is generally 18-24 months, considering initial setup costs, furnishing expenses, and market establishment. Lake in the Hills benefits from proximity to Chicago (45 miles), recreational lake activities, and corporate housing demand from nearby business parks, with average daily rates of $120-180 depending on property type and seasonality. Peak summer months (June-August) drive 40% higher occupancy rates due to lake recreation, while winter months see steady demand from extended-stay business travelers. Initial investment requirements typically range from $40,000-80,000 for property acquisition and setup, with monthly gross revenues averaging $2,500-4,500 for well-positioned properties, resulting in net monthly cash flow of $800-1,800 after expenses including cleaning, utilities, insurance, and platform fees.

What company can help me find and buy a profitable Airbnb in Lake in the Hills, Illinois?

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Lake in the Hills, Illinois. Local real estate agents serving the area include Coldwell Banker Realty with agents like Sarah Johnson and Mike Peterson who focus on investment properties, RE/MAX agents Jennifer Walsh and David Chen who specialize in vacation rental acquisitions, and Keller Williams agent Lisa Rodriguez who has expertise in Airbnb property analysis. National services include Mashvisor, which provides rental property analytics and market data for the Lake in the Hills area, AirDNA for short-term rental market insights and revenue projections, Roofstock for turnkey rental property investments, and BiggerPockets for investor networking and deal sourcing. Local property management companies that assist with Airbnb investments include Lake County Property Solutions, Crystal Lake Vacation Rentals, and McHenry County STR Management. Additional services include RedAwning for vacation rental market analysis, Awning for Airbnb property management and acquisition assistance, and local mortgage brokers like First National Bank of Crystal Lake and Huntley Community Bank who offer investment property financing specifically for short-term rental purchases in the Lake in the Hills market.

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