DSCR for acquisition of existing PadSplit

[Bob Willis]

I am interested in talking to someone about the process of funding via DSCR the acquisition of a property currently being run as a PadSplit. The plan is to keep operating the property as a PadSplit post-acquisition. What kind of seasoning is generally required as it relates to the rents/revenue as it relates to servicing the note, etc...

I currently own one PadSplit (acquired via Subject-to) that has been up just over a month. And the plan is to convert an existing Airbnb I own (and have run as an Airbnb since 2019) to PadSplit. This conversion will begin at the end of the month.

I am just sharing the above to give context to my level of experience with this type of investment.

I look forward to hearing from you all.

[Josh Bowser]

Gang - I love the back in forth on this thread and looks like this post keeps getting responses!

If anyone has an end lender that has successfully closed a handful occupied padsplit loans and can underwrite based off actual padsplit rents I would really appreciate an intro. I'm familiar with Jeff and the C2C team (i've heard great things) and work primarily with Fernandos team who I love.

Right now - all of the padsplit loans I am working on for my clients are underwritten based off long term rental rates. Getting a DSCR of 1 in some of the higher tax counties of Georgia is tight, but we've been able to get through them. Finding another end lender that can underwrite based off actuals would add a lot of liquidity to the space.