Short & Mid-Term Rental Operators

Short-term rental (STR) and mid-term rental (MTR) operators run properties leased for less than 12 months — nightly Airbnb/VRBO stays, 30–90 day travel nurse contracts, executive corporate housing. Traditional DSCR lenders often reject these deals because market rent surveys don’t capture STR revenue.

STR/MTR-friendly DSCR lenders use projected AirDNA revenue, actual booking history, or a blended long-term rent floor to qualify the deal. The difference between “declined” and “approved” is which lender sees the file.

The Deal: 3-bed Gulf Coast beach cottage. Purchase price $425,000. Projected AirDNA gross revenue $68,000/year ($5,667/mo).

Held in LLC. Closes in 28 days. Investor rents nightly at $250–$400 depending on season.

STR/MTR is where the yields are. A property that would cash flow $250/month as a long-term rental can produce $1,500–$3,000/month as an STR in the right market. But most lenders won’t underwrite that revenue model.

The wrong lender kills the deal by using market long-term rent (which fails DSCR) instead of STR projections (which crush it). Working with a broker who knows which lenders play in this space is the difference between “your deal doesn’t work” and “let’s structure this.”

Illustrative framework:

• —Rates: typically 0.5–1% above standard DSCR (STR is higher risk to lenders)
• —LTV: 70–75% purchase, 65–70% cash-out (varies)
• —Origination: 1.5–2 points typical
• —Reserves: 6–12 months PITI required (higher than LTR)
• —Credit minimum: 680–700 most programs
• —Appraisal: 1004 + 1007 rent schedule, plus lender may request AirDNA report or 12-month booking history
• —Prepay penalty: 3–5 years step-down standard
• —Timeline: 25–35 days close

Different situations call for different lender strengths. Through my network, I can access programs that specialize in:

• AirDNA-based qualification (no booking history required for new STR operators)
• Trailing 12-month revenue underwriting for established STR portfolios
• Blended STR + long-term rent floors for markets in regulatory flux
• 5–8 unit small multifamily with mixed LTR/STR use
• Bridge financing to acquire and convert LTR properties to STR/MTR
• Portfolio blanket loans for operators scaling past 5 STR doors
• Non-warrantable condo STR financing (many lenders won’t touch these)

Documents I’ll need:

• —Property address + purchase price
• —AirDNA report OR 12-month booking history (Airbnb/VRBO export)
• —Estimated taxes, insurance, HOA, STR license fees
• —Photo ID
• —Two months bank statements
• —LLC docs if closing in entity
• —Credit authorization