Looking for an Appraiser who does appraisals for STR
Investor · CA · Member since 2025 · 7 posts · 4 votes
Looking for an Appraiser who does appraisals for STR
7 Replies
- 7moNate HerndonPro MemberLender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
Hi Ashley - an "STR-specific" appraiser is not a request I've seen before - so, you have my interest! What is the thinking for the appraiser who has experience with appraising short-term rental?
Here's what appraisals usually look like for short-term rental purchases and refinances that I do for STR clients:
• Appraised based on comparable sales
Not appraised differently whether they be owner-occupied vs. long-term rental vs. short-term rental. it is all done on the same appraisal form - a Fannie Mae Form 1004. Any appraiser should just use plain 'ole sales comps within the past year and within a reasonable distance - typically a mile or less from the subject property.
• Market Rents
This may be the part where you're looking for that STR experience, but I'll tell you how the short-term rental programs typically look at rents. Though we obtain long-term market rent comps on the appraisal (via Fannie Mae Form 1007), we use 80-100% of the AirDNA market rents for underwriting. Therefore, we know what the market rents are before we start the loan process.
Let me know if there's other things you're thinking of - as an AirBNB owner myself, it's an interesting request!
- 7moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Ashley Cleary:
STR Appraiser needed. Is there anyone specific you guys recommend? How do investors go about getting an appraisal for STR?
Is this for a mortgage or are you just looking for an independent appraisal?
LuxePrivate Investments LLC 572 Reviews - Lender · Nationwide · Member since 2022 · 46 posts · 28 votes7mo
Hi Ashley,
This comes down to process at the AMC level, not just finding a “good appraiser.”
The way we handle STR appraisals is before the order is ever placed:
When we order the appraisal through one of the AMCs we use, we:
- Disclose upfront that the subject property is (or will be) a short-term rental
- Ask the AMC to assign an appraiser who is familiar with both the local market and STR use in that area
- Make sure the appraiser understands the intended use before accepting the assignment
Most appraisers will not put STR income directly on the 1007 rent schedule, even when the data is strong. That’s normal. On occasion it does happen, but it’s the exception, not the rule.
Because of that, the AMC we use requires the appraiser to complete a separate STR narrative:
- Market support for STR use
- Occupancy and seasonality discussion
- How STR income was considered (even if not relied on for value)
This approach doesn't force STR rent into the wrong form, but it documents it properly, which is what lenders and underwriters actually need.
Short version:
You don't "shop" for an STR appraiser — you control the assignment criteria through the AMC so the right appraiser is selected from the start.That's been the most consistent way we've avoided bad STR appraisals.
- 7moBo SmithPro MemberHinton, WV · Member since 2026 · 1k+ posts · 373 votes
Pro tip: ask your appraiser upfront if they've done STR valuations before. Regular appraisers will comp it like a rental and miss the income approach entirely. Seen $30k+ swings between STR vs regular appraisers. Is this for refi or purchase?
- 7moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 497 votes
If you are trying to get a loan for a short term rental (STR) DSCR purchase you can possibly structure the loan with AirDNA depending on the details of the property. If you are doing a refinance, the lender will use the last one year of rental property history. Generally a 20% expense factor is taken against the gross profit estimate or actual profit. For easy math, if the monthly rent is $1,000 after the 20% expense factor is applied to the $1K, it's $800 monthly rent versus the monthly property expenses of the mortgage, property taxes & insurance and HOA if applicable. Generally appraisers are not good at doing STR rental surveys to structure the loan and their values will come in a lot lower than expected so that is to be avoided if possible. Happy to connect to discuss further.
Bright Skyline518 Reviews - Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes7mo
@Stacy Raskinyou failed to mention what happens if the property owner has set up a triple net lease with a management company essentially guaranteeing a specific amount of income with no taxes, insurance or maintenance expenses.
- 7moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 497 votes
Quote from @Todd Goedeke:
@Stacy Raskinyou failed to mention what happens if the property owner has set up a triple net lease with a management company essentially guaranteeing a specific amount of income with no taxes, insurance or maintenance expenses.
There was not a failure to mention anything. For 1-4 units which is the DSCR STR loan program I was describing, the DSCR STR (shorter term rental) loan is structured the way I described. I helped fund one last week so I know how the program works.
For a STR DSCR loan, the actual or projected rent has 20% of the income deducted for expenses and then the leftover rent money is weighed against the new mortgage, property taxes & insurance and HOA (if applicable). For a DSCR loan that is not a STR, this 20% expense factor is not included. It's included for STR loan structure because generally short term rentals gross a lot more revenue compared to a long term rental but they have greater expenses such as cleaning between guest stays etc and the goal of the 20% expense factor is try to account for the STR expenses that are typical of a STR but not a long term rental.
A triple net lease is a commercial lease term. It is a real estate agreement where the tenant pays a lower base rent plus all three "net" property expenses: real estate taxes, property insurance, and maintenance/operating costs. This is something that might be used for example for a store or an office. In residential real estate an investor/owner is generally not setting up this kind of lease with a property management company for a 1-4 residential unit (anywhere from a single family unit to a fourplex). In residential property management, generally a property management company is going to get paid a percentage of the gross rent of each unit the property management company manages.
I have a background as a real estate broker besides being a mortgage broker and adviser. I work with STR property management companies and regular property management companies and never heard of either types of management companies setting up a triple net lease with an investor for a 1-4 unit property. The way the loan is structured and funded is the relevant item so the 20% expense factor is taken generally in 1-4 DSCR STR loan program guidelines. It's something to be aware of if an investor is trying to get that type of funding so planning can be made to make sure the STR property will qualify and loan underwriting will go smoothly for funding.
Bright Skyline518 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.