DSCR Loan for an Airbnb: Buying With an AirDNA Report

What I mean by an Airbnb DSCR loan

I use Airbnb loan or STR loan to describe financing for an investment property operated as a short term rental. STR means short term rental, whether bookings come through Airbnb, another platform or a property manager. I qualify a DSCR loan on the property's rental income, not your personal tax returns. I explain the property review on my Airbnb loans and short term rental financing page.

How I count short term rental income

I review 12 months of actual rental history when it is available. On a purchase without that history, I can use an AirDNA Rentalizer report. I need a Submarket Score of at least 65.

I calculate qualifying monthly income by dividing projected annual revenue by 12, then multiplying by 0.80. That is a 20% expense factor. If the report's Confidence Strength is Low, I take another 20% off the adjusted figure.

For a simple rental income example, I start with $60,000 projected annual revenue / 12 = $5,000 x 0.80 = $4,000 qualifying rent. With Low confidence, I use $3,200. These are projected rental income figures, not a guarantee of what the property will earn.

On a refinance owned 12 months or more, I use the 12 month average of actual rents. Owned less than 12 months, I use the lower of your actual average or the AirDNA figure. I review the reporting period and transaction before deciding which documentation applies.

I can also review the property's expenses through my DSCR calculator.

What I check before you buy

I ask you to confirm zoning, local STR permits and any HOA or condo rental restrictions before making an offer. I check whether the intended rental use is allowed at the address and for each unit. I also ask for an insurance quote and a clear management plan.

A projection report does not replace permission to operate a short term rental. I need both the rental income documentation and the property-use review.

How I review 1 to 4 units versus 5 to 9 units

I arrange DSCR financing for 1 to 9 unit investment properties used as short term rentals in 37 states. I review the income documentation and property classification program by program.

For larger residential properties, I review cabin clusters, small multifamily properties operated as short term rentals, and multi-unit beach or lake properties. Small motel conversions are not included. I cover that review in my 5 to 9 unit short term rental DSCR guide.

In Montana, the loan closes in an LLC. In most of my other states, an LLC or your personal name works.

My answer to buying an Airbnb with no money

I get asked how to buy Airbnb property with no money. A DSCR loan requires a down payment. I do not arrange zero down DSCR financing.

Equity from another property is a common route I review. I can check whether a DSCR HELOC on another investment property could help provide funds, subject to that program's requirements. I review that financing separately, including the property, available equity and eligibility. It is not automatic approval for the Airbnb purchase.

What I need you to send me

• I need the property address or listing link and the unit count.
• I need to know whether this is a purchase or refinance, and how long you have owned it.
• I ask for 12 months of platform or manager statements when available, or the AirDNA Rentalizer report on a purchase without that history.
• I ask for the zoning and permit information, association restrictions and insurance quote.
• I need to know how the property will be managed and whether title will be in an LLC or your personal name.

Send me the property

I will review the address, rental history or projection, and intended use before recommending a program. Send me the property and your plan, or call me at (207) 615-7770.