All Forum Posts by: Zach Edelman

Yes, there are lenders that do do this. You'll want to find one that can use AirDNA projections to qualify the loan and doesn't require a full 12 months of bookings.

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Agreed with the above. Those terms are quite expensive. What does the interest rate on your rental property in FL look like?

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Baltimore, Maryland

If you paid for the report, you own the report, that simple. I'd reach out to the AMC and ask for the report. They should be obligated to give it to you.

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DSCR loan can achieve this all day. What do you think is the effective LTV of that loan today? If you got a 90% LTV loan when you acquired the property, most DSCR lenders will be at 80% LTV on a rate-term refinance, and thus you will likely have cash to close (not sure if you're OK with this).

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I specialize in STR loans specifically for DSCR and most of my business is in Western, NC. Would love to chat if you're still looking for options!

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Asheville, North Carolina

DSCR is certainly an option with projections. You're fine.

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Asheville, North Carolina

Yes - you can get a DSCR loan without it being an LLC, but it will depend on the state the properties are located in, frankly.

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Quote from @Jacob Morgenstern:

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.

This is an excellent write up for DSCR loans for STRs. If you dive deeper, STR lenders that do DSCR (and do it properly) typically use any/all of the following three data points for deriving the STR rental income for the loan, and thus qualifying the transaction's DSCR:

- AirDNA

- Seller/Owner trailing twelve month booking history

- STR 1007/STR narrative analysis from appraiser

Hope this look under the hood helps!

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All Forum Posts by: Zach Edelman

Zach Edelman has started 18 posts and replied 1204 times.

Post: Want to buy a property for short term rental but dont have the income for 2 mortgages

Post: DSCR Lenders for Rural STRs? Balloon Coming Up — Need a Refi Partner Who Get.

Post: Looking to BRRR then Airbnb. Are there lenders?

Post: Need Deal Advice!

Post: Transferring an appraisal from one lender to other

Post: Guidance on refinancing from personal mortgage to an LLC

Post: DSCR loan for STR Investment Property in North Carolina

Post: Looking to refinance two STR's on the same property

Post: Lending on investment properties NOT in LLC

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

Debt & Loan Terms