Unlock Explosive Growth: How Short-Term Rental Mortgages Are the Secret Weapon Top Investors Don’t Want You to Know About
- How much the property makes or is projected to make as a short-term rental
- Whether the income will comfortably cover the loan payments
- Your credit score and down payment
- If the property is in a strong vacation rental market
It’s called a DSCR loan, or Debt Service Coverage Ratio loan, and it’s quickly becoming the go-to strategy for serious STR operators.
The Power of the DSCR Loan
Let’s say you’re buying a cabin near a national park. Host Financial would evaluate how much a property is likely to earn on Airbnb based on real data, such as AirDNA projections or actual performance from a similar nearby property.
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