Help! DSCR loan/trouble showing Airbnb profits to underwriting

Orlando · Member since 2019 · 3 posts · 1 vote

Hey bigger pockets people. I am currently getting denied on a DSCR loan due to the appraisal using long term rental comps. I am the buyers agent and the only financials we have from the seller/airbnb, although look fantastic, do not have the property address on the airbnb financial. It just has the LLC that the seller has it registered under.

Anyone use a DSCR loan and pulled financials from airbnb before? If so, what documents helped underwriting?

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Jeff ChisumPro Member

Lender · All 50 States · Member since 2020 · 248 posts · 142 votes

We use a service through Opteon did get STR rental data. No issues getting the ratios we need

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Trent Reeve
Atlanta · Member since 2022 · 712 posts · 642 votes
1y
my 2 DSCR's used short term rental estimates for rental appraisals. maybe its who they use for those appraisals, if they dont know how to check and estimate those rent amounts
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Alexander Young
OP
Orlando · Member since 2019 · 3 posts · 1 vote
1y
The appraiser definitely does not know how to use those. Can you recommend where I can find these short term rental estimates for rental appraisals tools to help our rebuttal?
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Jeff ChisumPro Member
Lender · All 50 States · Member since 2020 · 248 posts · 142 votes
1y
We use a service through Opteon did get STR rental data. No issues getting the ratios we need
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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
1y
Quote from @Alexander Young:

Hey bigger pockets people. I am currently getting denied on a DSCR loan due to the appraisal using long term rental comps. I am the buyers agent and the only financials we have from the seller/airbnb, although look fantastic, do not have the property address on the airbnb financial. It just has the LLC that the seller has it registered under.
Anyone use a DSCR loan and pulled financials from airbnb before? If so, what documents helped underwriting?

Alexander, I deal with scenarios like this daily. Lots of solutions. Happy to discuss anytime let’s connect when you can!
[email protected]860-538-3672
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Timothy Hero
Lender · United States · Member since 2020 · 1k+ posts · 499 votes
1y
Financing STR's in this market is a little trickier. I know of an STR lender that goes off your Airbnb history, and if you don't have a full 12 months of that, they'll look at comps via Airdna, then go off 80% of those numbers.
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Scott WolfPro Member
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
1y
Quote from @Alexander Young:

Hey bigger pockets people. I am currently getting denied on a DSCR loan due to the appraisal using long term rental comps. I am the buyers agent and the only financials we have from the seller/airbnb, although look fantastic, do not have the property address on the airbnb financial. It just has the LLC that the seller has it registered under.
Anyone use a DSCR loan and pulled financials from airbnb before? If so, what documents helped underwriting?

On a purchase we can use AirDna data or allow a DSCR of down to 0.75.
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Dalton O'Donnell
Member since 2023 · 19 posts · 3 votes
1y
I agree with the lenders in here. Better off going with a lender that focuses on STR DSCR loans. But here is some feedback based on my experience with STR DSCR loans.

1) Using Air DNA is typically a safe play in these scenarios (if the lender will allow it). At that point the appraisal 1007 doesnt really matter if they are using STR comps or LTR comps.

2) Another option is trying to convince appraiser or find an appraiser that will put STR comps on the 1007.

3) Last option is to find a way to show the 12 month history via Air BNB report. Although it doesnt show the address and it will show the LLC name of the owner, you can cross reference the address with the air bnb link. And if they need further evidence you can try to see if the seller will provide an operating agreement to show he owns that LLC.

I have successfully closed STR DSCR loans using all of the above. I have also gotten them closed in 10-14 days. If you want me to look it over, I'd be happy to. Or if you'd like to reach out to just pick my brain, that is fine as well. Happy to help in anyway I can. I know how frustrating it can be trying to convince an appraiser to do what makes logical sense yet they still wont...
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
1y
Im often a buyers agent and 8/10 lenders use the LTR comps. Find one that can use STR, it does not have to be the actual data from the property most use AirDNA. Good luck!
[email protected]813-563-0877
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Amber Stout
Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
1y
Hey Alexander—this is a common issue with DSCR loans on STRs. Most lenders need verifiable income tied directly to the subject property, not just the LLC name.

For your current deal, I would try tie the LLC to that specific property address if that's the issue. That will be easiest/fastest solution.

Next option is going to appraiser with your STR data & perhaps Air DNA (whatever data supports the value you need) and rebuttal the value.

Last option, switch to a lender that will use Air DNA estimates.

You got this!! I do have a couple lenders that will use Air DNA estimates —happy to point you in the right direction if needed!
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