Crashpad Lending Question (DSCR)

[Kathryn C.]

My business partner and I are looking at purchasing a house to setup a Flight Attendant / Pilot Crashpad in Las Vegas. The price of a suitable property will be $425,000 - $475,000 and we can come with up to 25% down. My question is if we go for a DSCR loan, will the lender only consider the Rent Value of the property based on if a single family rented it, or will they consider the rent value for the intended purpose which is much higher? Typically rental income for a crashpad will be about 2x market rent but of course we have some operating and management expenses to cover and all that, but it still cash flows reasonably positive.

[Michael Baum]

Hey @Kathryn C., have you check the regs regarding STRs in Las Vegas.

Here is a full rundown - https://thenevadaindependent.c...

There are a lot of restrictions in Las Vegas so you should make sure you can actually do it where you are looking.