Air BNB Financing questions

Short-Term & Vacation Rental Discussions
4yFollow

Air BNB Financing questions

Matthew Balter
Real Estate Agent · Portsmouth NH · Member since 2020 · 13 posts · 6 votes

I'm looking at buying a vacation rental at a ski mountain. I'm curious on financing for STR's. Bank's generally like to see leases and income data for investment properties but with AirBNB it's not as secured. What advice / tips do you recommend for financing STR's besides all cash purchases to acquire the property? I'm also curious to any examples that you may have? Thanks!

0Reply
9 views

Most Popular Reply

Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
4y

Plenty of options out there. 2nd home/vacation home loans if you plan to use it yourself some as well. DSCR loans typically will use something like AirDNA to project revenue. Lots of more creative stuff out there as well but those two are the most popular.

Cosmic Vacations4.9174 Reviews
WebsiteView Page
1Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    4y

    Plenty of options out there. 2nd home/vacation home loans if you plan to use it yourself some as well. DSCR loans typically will use something like AirDNA to project revenue. Lots of more creative stuff out there as well but those two are the most popular.

    Cosmic Vacations4.9174 Reviews
    WebsiteView Page
    1Reply
  • Matthew Balter
    OP
    Real Estate Agent · Portsmouth NH · Member since 2020 · 13 posts · 6 votes
    4y
    Quote from @Ryan Moyer:

    Plenty of options out there. 2nd home/vacation home loans if you plan to use it yourself some as well. DSCR loans typically will use something like AirDNA to project revenue. Lots of more creative stuff out there as well but those two are the most popular.

     @Ryan Moyer I had the property management company I would use run a report from AirDNA on the property I'm considering. The numbers provided would definitely justify the purchase price. Have you had a lot of success with that as enough proof for financing approval?

    0Reply
  • Sunny Alexander
    Real Estate Broker · Tampa, FL · Member since 2020 · 103 posts · 74 votes
    4y

    Check out hostfinancial.com, they finance STR. Good luck!!!!

    1Reply
  • Alexa Ferguson
    Real Estate Agent · Denver, CO · Member since 2021 · 40 posts · 101 votes
    4y

    Hey @Matthew Balter, in addition to what @Ryan Moyer said, you can also purchase a STR property simply using conventional financing with at least 20% down. If you plan to buy another property after that, that's when you may need to get a bit creative since STR income is not counted by most lenders for 2 years. So if you need that STR income to get your DTI in a good place, a DSCR loan may be a good option until you hit that 2 year mark and can count your STR income. Hope that's helpful!

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free