Underwriting STR vacation rentals? Best software or excel template you can share?

Question

I have been in long term rentals for about 15 years. I am looking into purchasing a STR/vacation property as another rental income business line to diversify and need to understand the underwriting. I am looking for suggestions on either underwriting software and/or excel templates for this type of underwriting. I don't know the average occupancy, ADR, etc. for this region so a software that is pretty good at predicting that would be helpful.

Also, for obtaining debt, do lenders price this as more risky? How are the loan terms typically written for this purchase and how have you fared in terms of the rate/length of loan, etc.?

John Underwood · Answer

Software is only so good at predicting these things. You are better off manually looking at the potential competition on VRBO and Airbnb to get your best numbers.

STR spreadsheets have already been shared on here and you can search and find them.

Jacob Morgenstern · Answer

For accurate STR underwriting, you’ll want tools that can provide real-time market data. Here are some solid options:

AirDNA & Rabbu – Provide estimated ADR, occupancy rates, and revenue projections (though they often underestimate actual performance—we’ve consistently outperformed their projections at Stayshores).Pricelabs Market Dashboards – Great for dynamic pricing insights and real occupancy trends.STR Insights – More tailored for finding the best-performing STR markets.For underwriting, I use mypropertystats.com. They have an option where you can input daily rates if you are underwriting a short term rental.

Debt & Loan Terms

STR financing is slightly different from traditional long-term rental loans:

📌 DSCR Loans (Debt-Service Coverage Ratio) – Lenders will look at projected STR income instead of personal income to qualify. Rates are slightly higher than conventional loans, but terms vary.
📌 Conventional Investment Loans – If the property qualifies as a second home and meets occupancy requirements, you may secure a better rate.
📌 Portfolio & Commercial Loans – Good for scaling multiple STRs under one loan, though they usually require stronger financials and reserves.

Loan terms? Rates tend to be 0.5% to 1% higher than standard investment loans, and lenders may require 15-25% down. Loan lengths vary (15-30 years), and interest-only options are sometimes available for cash flow optimization.

Collin Hays · Answer

We have a couple of clients that are deep underwater with their purchase, because they relied on what a realtor told them or what AirDNA told them. AirDNA is about as reliable as CarFax when you are buying a used car. In other words, there is a lot of information missing.

You will have to get your hands dirty and do your own research to cover your rear end. That means lots of taking notes on like properties on VRBO and Airbnb.

Good luck!

Bruce Woodruff · Answer

Yep, John and I always agree on this one. Only you know all of the details of your situation. So you should create your own spreadsheet rather than count on a random algorithm to sort things out......think about it - do you want to trust an algorithm with your financial future? Or use your own brainpower and actual facts, not assumptions based on other transactions?

I would even go one further and suggest creating your very own Excel spreadsheet rather than rely on one that someone else created for their circumstances. Look on the various platforms and use the real-world numbers of occupancy and rates...

Tyler Divin · Answer

BNBCalc is the underwriting tool for STR I like using the best, but as others have said, you really have to roll up your sleeves and dig into comparable properties.  I like BNBCalc because you can set up defaults and plug properties in much faster than a spreadsheet, adjust them more efficiently, and know there isn't a formula error creeping around in the background from a typo.

Regarding how to roll up your sleeves and dig into comparables, John Bianchi has a video series on YouTube that's an MBA in forecasting STR income.  He has a method where you build a buy box by analyzing top performers in the market, comb through the market looking for them, and then set up searches for your buy boxes so you create a steady stream of listings that fit your buy box without wasting time or forgetting to go back and look at that market you were interested in a few weeks ago.  This method is far superior to going to Zillow, looking at random listings, and running them through a calculator.  He teaches you how to look at a market, understand why specific properties are performing how they are, and ID the must-have features and amenities.

Anja Schaer · Answer

As an STR/MTR host & co-host in Metro Atlanta, I’d recommend using a mix of tools for underwriting:

• AirDNA & STR Insights – Good starting points but don’t rely solely on them.
• BNB Calc & Pricelabs Dashboards – Helpful for forecasting and pricing trends.
• Manual Research – Check Airbnb/VRBO comps, occupancy rates, and nightly pricing.
• BP STR Calculator – A solid Excel tool for underwriting.

Financing Tip: DSCR loans focus on projected STR income, but second-home loans (if eligible) often offer better terms. Lenders may require 15-25% down, and STR loans typically have slightly higher interest rates.

Once you narrow down a market, connect with an experienced, investor-friendly Realtor in that area to confirm numbers. Combining local expertise with solid research will help you make an informed decision. Which market are you targeting?

Ben Fernandez · Answer

Have you referenced AirDNA's website? This is a good source to summarize data for the address you are researching. That way you can proceed with your underwriting.

I'd think you can use what you've used for your long-term rental investments once you have the ADR and occupancy rate. Other significant variables are the cost of property management, internet, cleaning/maintenance, utilities and furnishing.

Chris Seveney · Answer

A short term rental will have slightly higher interest rate and require lower loan to value limits

Chris Seveney · Answer

if your local lender would do that - 100% better option in most cases.

Underwriting STR vacation rentals? Best software or excel template you can share?

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