All Forum Posts by: Zach Edelman

Second vote for DSCR for Investors. Something else people don't know is that technically, for second home loans, you are supposed to occupy the property for more than 180 days. Secondly, technically, to qualify for a second home loan, it must be located a specific distance from your primary residence or in a vacation or resort area such as near the ocean or by mountains. Investors that try to use a second home loan to put 10% down and neglect these restrictions can risk being put in default/legal trouble. Why play with fire?

Short Term Rental Loan Program Guide including FREE AirDNA Revenue Calculator for Any Address!

Easy Street Capital has the hands down best Short Term Rental Loans lending program for Breckenridge STRs! Why?

👉EASY Qualification!

✅No DTI (Debt-To-Income) Requirement
✅No Tax Returns Required
✅No Income Verification

👉Forward-Thinking Underwriting!

✅ Qualify with AirDNA Projections
✅Up to 80.0% LTVs (only 20% down on purchases)
✅Tertiary / Vacation Markets OK

👉#AirBnBRRRR Friendly!

✅Lending Solution for the Purchase, Rehab AND the Refinance
✅100% Cash-Out Refinances within 3 Months!
✅No Lease Required

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Looking to finance a Short Term Rental investment Property?
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Helpful Links:

Short Term Rental Lending Program

Short Term Rental Lending Options – Maturing and Growing Fast!

Best Way to Finance your Short-Term Rentals

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💵Just Funded💵🌄Short Term Rental Loans🌄
$1,470,000 Cash-Out Refinance STR Loan (DSCR Loan) on a Short Term Rental in Sevierville, Tennessee via America's #1 STR Lender! This brand-new build (5beds5baths) from an airbnb Pro should thrive in the Smokies!

The property is a newly constructed 3,253 square-foot single-family residence located in Sevierville, Tennessee, a city situated in the foothills of the Great Smokey Mountains approximately 15 miles north of Great Smokey Mountains National Park. Built in 2024, this property is in C1 condition per the third-party appraisal. This property features five bedrooms and five and a half bathrooms, an indoor pool, and an elevated deck offering magnificent mountain views. The residence is located in a suburban neighborhood less two miles north of Tennessee State Route 339, a primary-east-west highway in the area, and is within 16 miles of all the area's main attractions including theme parks, museums, outlet malls, restaurants, hiking trails, and rivers. Surrounding land use includes single-family properties of comparable age, style, design, and condition. The property just recently finished construction and will be utilized as a short-term rental. The appraisal-determined short-term rental market rent of $18,500 per month was used to project effective gross income, which resulted in a 1.57x DSCR.

Short Term Rental Loan Program Guide including FREE AirDNA Revenue Calculator for Any Address!

Easy Street Capital has hands down the best Short Term Rental Loans lending program, especially for Sevierville, TN! Why?

👉EASY Qualification!

✅No DTI (Debt-To-Income) Requirement
✅No Tax Returns Required
✅No Income Verification

👉Forward-Thinking Underwriting!

✅ Qualify with AirDNA Projections
✅Up to 80.0% LTVs (only 20% down on purchases)
✅Tertiary / Vacation Markets OK

👉#AirBnBRRRR Friendly!

✅Lending Solution for the Purchase, Rehab AND the Refinance
✅100% Cash-Out Refinances within 3 Months!
✅No Lease Required

👉RATES starting at just 5.99%

Looking to finance a Sevierville, TN Short Term Rental investment Property?
DM Me to get started!

Helpful Links:

Short Term Rental Lending Program

Short Term Rental Lending Options – Maturing and Growing Fast!

Best Way to Finance your Short-Term Rentals

Book a call with me

Seconding this point. Also certain lenders will either allow for you to execute a partial IO loan which is where typically the front end of the loan (5-10 years) has interest only payments. The lender can then use the interest only payments to qualify the DSCR ratio, allowing for a higher DSCR. Want to also add that certain DSCR lenders should be able to execute even with a sub 1.00x DSCR.

Have seen plenty, it's just most of them are self managed to be honest with you. 

Not sure if you have solidified/chosen a lender yet, but BP has a list of reccomended DSCR lenders that I think would be great for you to check out. Secondly a 7% rate with 1-2 points depending on LTV, FICO, DSCR, and prepayment penalty does sound fair/market standard. Think you're getting a solid deal if those are your terms.

Why would you not do the 1031 exchange option based on the way you outlined the scenario above (acquire an appreciating asset, defer taxes)? Also at 50% down you are going to get rates in likely the high 6's to low 7's currently on a 30 year loan. 

Bigger Pockets has a list of recommended lenders specifically for STRs. Would start there/check that out!

You should be able to refinance with a DSCR loan with a lender that utilizes AirDNA projections. You will be able to convert your current debt to a 30 year perm debt loan and cashflow on a long-term basis.