In this episode, we discuss funding your short-term rentals (like Airbnb properties) with portfolio loans. No tax returns needed. In most cases you need a 12 month history of short term rental income or we can use market rent to meet the Debt Service Coverage Ratio (DSCR) requirement. We also have bridge loans that we can refinance into long-term rental loans.
It's like BRRRR but supercharged!
💥 Refinances of properties with 50% or more of the units operating on short-term rental strategies are eligible
💥 The Borrower must use an online service, such as AirBnB, VRBO, HomeAway, etc. to document receipt of rental income
💥 Documentation verifying rental income receipts over a minimum of the last 12 months
💥 DSCR will be calculated using the average income receipts over the last 12 months
💥 If documentation cannot be provided covering a last 12 month period, the property’s DSCR shall be calculated based on market rents from Appraisal Form 1007 or 1025