SHORT TERM RENTAL
LENDING PROGRAM

Easy Street Capital is America’s leading lender for properties utilized as Short Term Rentals (STRs), the fastest growing frontier in real estate investing.

 

For our Short Term Rental Loans (STR Loans), We combine the traditional 30-year fixed rate residential mortgage product with flexible and hassle-free underwriting, delivering quick and efficient 30-day closes and non-intrusive documentation requirements (no tax returns, no income verification).

 

A forward-thinking lender, we have pioneered creative, flexible and data-driven qualification for our STR Loans. As one of the first lenders to utilize the AirDNA Rentalizer qualification tool (while staying consistent through market volatility when other lenders pulled away), we are proud to offer our borrowers free access below! The Rentalizer Tool provides incredibly strong and consistently updated data including projected Revenue, Occupancy and Average Daily Rate for any property in the United States!

STR Revenue Calculator

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With rates starting at 5.99% our short term rental loans are competitive with all financing options available, perfect for the first-time investor diving in as well as seasoned professionals looking to rapidly expand a robust portfolio.

 

Whether the property is a traditional single family residence rented on Airbnb, a luxury condo in a booming metropolitan area, or a professionally managed vacation rental property near a popular resort town - we can lend.

The Easy Street Difference

Why are our Short Term Rental Loans different than the rest?

Vs. Conventional Lenders

Conventional Lenders are a traditional option for short term rental investment properties and can offer some of the lowest rates available. However – those low rates come with many strings attached – oftentimes including the headache and hassle of seemingly endless paperwork. Conventional Loans can be a great option for some, especially those first starting out or investing on the side with a normal W-2 occupation. However for STR Investors looking to scale and take the full journey to financial freedom through short term rentals investing, Easy Street Capital’s STR Loan program offers these advantages versus Conventional Loans:

 

No DTI Ratio – Easy Street Capital STR Loans do not use DTI Ratio in qualifying and underwriting your loan

 

No Tax Returns – Easy Street Capital STR Loans do not require any tax returns (personal or business) when underwriting your loan

 

LLCs/Partnerships OK – Short Term Rental Loans by Easy Street Capital allow for you to borrow under an LLC or other entity structure instead of in your personal name – thus allowing LLC protection, the ability to invest with partners and protection of personal credit (loans do not show up on personal credit reports when borrowing through an LLC)

 

No Concentration Limits – Conventional Lenders following Agency Guidelines have an absolute maximum of 10 rental properties which stifle short term rental investors trying to scale. Easy Street Capital Short Term Rental Loans have no such limits

 

Flexible Qualification and Underwriting – Conventional Lenders are harshly limited in any flexibility on qualification, especially around rental revenue on short term rentals. Easy Street Capital uses forward-thinking and proprietary underwriting methodology for short term rental loans and qualifies based on the true elevated income potential of short term rentals

Vs. Second Home Loans

Second Home Loans are another popular option to finance short term rentals. People are particularly drawn to this loan product due to the “10% Down” requirement with a maximum LTV of 90% (higher than the typical 20% minimum down payment required for DSCR Loans). However, there is one large drawback and it is a big one. Rules for this loan product require that the property is rented no more than 180 days per year or generally half the time! This makes it so generating enough cash flow and return on investment as a short term rental practically impossible (unless you are breaking the law, NEVER advisable). Thus, these loans are really not geared towards short term rental investors, rather for people that want a vacation home that can also be rented out from time to time. Easy Street Capital’s STR Loan program offers these advantages versus Second Home Loans:

 

No DTI Ratio required for qualification

 

No Tax Returns required for underwriting

 

No Restrictions on Days Rented Per Year – can be rented year-round (365 days per year)

 

Allows Operations from Property Management Company – Second Home Loans restrict the borrower from utilizing any property management company for short term rental operations, a necessary tool in the toolkit of many STR investors that is totally allowed under Easy Street Capital’s Short Term Rental Loans program

 

Restricted to Single Family Residences – Only “one-unit” properties qualify for second home loans, while Easy Street Capital will finance short term rental properties up to 10 Units!

 

Out of State Investing – Second Home Loans require that the borrower “live a reasonable distance from the buyer’s primary residence” while Easy Street Capital allows for Short Term Rental Loans across the United States without regard to distance from home, and also doesn’t even require the owner to own a primary home at all (renting is OK!).

Vs. other "DSCR" Lenders

DSCR Lenders are typically the go-to option for Short Term Rental Loans because of the easy qualification and the emphasis on the income potential of the properties rather than personal DTI. But not all DSCR Lenders are created equal when it comes to STR Loans. Generally, DSCR Lenders fall into three buckets when it comes to Short Term Rental Loans – 1) Traditional DSCR Lenders that finance Long Term Rentals Only, 2) DSCR Lenders that finance short term rentals, but with traditional and conservative restrictions on qualifications (such as requiring it to also qualify as a long-term rental or requiring at least 12 months of operating history) and 3) Forward-Thinking DSCR Lenders that are committed to the STR space and tailor their programs to satisfy the needs of short term rental investors. Easy Street Capital is proud to be the leader of the small group of DSCR Lenders that fully embraces Short Term Rentals and can lend on STRs that others can’t! Examples of why Easy Street Capital’s industry-leading STR Loan program is a step above other DSCR Lenders include:

 

Qualify DSCR with AirDNA Projections – Easy Street Capital was one of the first lenders to embrace the latest technology in the STR space and utilize AirDNA projections to qualify loans – where most DSCR Lenders will only underwrite based on how the property will perform as a long-term rental (even in vacation markets where STR is the norm!). This allows Easy Street Capital to make deals work based on the true potential while most other lenders would turn them away

 

“AirBnBRRRR” Friendly – Many investors have combined the popular “BRRRR Method” of real estate investing with short term rentals, rehabbing a property in need of renovations using cash or a hard money loan and then once ready, utilizing the property as an STR instead of renting on a long-term lease before refinancing into long-term, lower-rate debt. Even most “STR-friendly” DSCR Lenders will not allow the cash-out refinance until 12 months of operations, thus sticking investors with expiring, high-rate loans. Easy Street Capital is different, we allow cash-out refinances based on STR projections after just one booking! (no need to wait an entire year). This allows our borrowers maximum ability to scale and grow!

 

Seasonal / Vacation / Rural Markets OK! – Even as more and more DSCR Lenders have started to embrace the short term rental space, they still throw up roadblocks in many markets, especially those with heavy seasonal variances or in smaller towns. Another Easy Street Capital Difference is that we understand that seasonal and rural markets can provide outsized returns – even if its packed into just a few months per year! Easy Street Capital Short Term Rental Loans do not discriminate against seasonal or vacation markets (not a factor in our qualification process) and will lend in rural areas!

SHORT TERM RENTAL RESOURCES

Short Term Rentals Guide: Charlotte, North Carolina

Welcome to the ultimate guide to investing in short-term rentals in Charlotte, North Carolina! The most populous city in the fast-growing Tarheel state, Charlotte continues to be a popular destination for real estate investors, especially in the short term rental space. With many diverse demand drivers, including professional sports, museums and a thriving business climate, ...
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Short Term Rentals Guide: Wisconsin Dells, Wisconsin

Welcome to the ultimate guide to investing in short-term rentals in Wisconsin Dells, a popular regional vacation destination in the Midwest! Known as “The Dells” and also the “Waterpark Capital of the World,” Wisconsin Dells, located in south-central Wisconsin and nestled on the banks of the Wisconsin River.  The Dells are a beautiful natural cliff ...
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Short Term Rentals Guide: Fredericksburg, Texas

Welcome to the ultimate guide to investing in short-term rentals in the charming town of Fredericksburg, Texas! Nestled in the heart of the Texas Hill Country, this historic destination boasts a rich German heritage, world-class wineries, and breathtaking natural beauty. Whether you’re planning a weekend getaway or an extended stay, our comprehensive guide will help ...
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Short Term Rentals Guide: Asheville, North Carolina

Welcome to the ultimate guide to investing in short-term rentals in the beautiful western Carolina city of Asheville! Nestled in the heart of the Blue Ridge Mountains, this Buncombe County destination boasts a breathtaking and bountiful natural beauty as well as thriving arts and culinary scene. Whether you’re planning a weekend getaway or an extended ...
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10 Things Investors Should Know About Buying a Short Term Rental in Savannah, Georgia

This article is a guest post by Julie Gates, you can read more about the author here.   As investors seek emerging markets in the Southeast, tiny Savannah, Georgia has started to hit national lists. Placed perfectly on the I 95 corridor, Savannah sits between Florida and the Northeast passage. Savannah has also been quietly ...
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Best Vacation Rental Markets 2023

Real Estate investors continue to find success with vacation rentals in 2023 despite headlines that might indicate otherwise.  For investors in vacation rentals or “short term rentals,” many properties and markets are still providing strong cash flow and healthy returns.  Short term rental investing in non-traditional vacation markets, like big cities or suburban outposts increased ...
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Easy Street Capital - Short Term Rental Industry Leadership!

Inaugural STR Forum | Jun. 2022 | Austin, TX
Winter STR Forum | Jan. 2023 | Miami, FL
2nd Annual STR Forum | Jun. 2023 | Austin, TX
STR Wealth Conference | Mar. 2023 | Nashville, TN
STR Growth Summit | Sep. 2023 | Austin, TX

FAQs - SHORT TERM RENTAL LOANS

Where do you lend on Short Term Rentals?

We lend in every state except for Nevada, North Dakota and South Dakota. We will rent in smaller and non-traditional markets within every eligible state.

 

 

What type of Loans are Easy Street Capital’s Short Term Rental Loans

Easy Street Capital’s STR Loans are part of its DSCR Loans program, specific terms and structure can be found here on our EasyRent (DSCR) Loan Page!

 

 

Do You Do Short Term Rental Loans on Rural Properties?

Yes, rural properties are eligible for Easy Street Capital STR Loans, however the LTV (loan-to-value) Ratio will be limited to 70.0%

 

 

I’m looking to purchase a vacant home and turn it into an Airbnb, is this eligible under the EasyRent program?

Yes, properties currently operating under any use are eligible, including vacant properties, someone’s home, or properties already operating as an Airbnb or vacation rental.

 

 

How much do I need to put down for a down payment if I'm purchasing?

A minimum down payment of 20% is required for a Short Term Rental Loan from Easy Street Capital. While this is more than the 10% required for a “Second Home Loan,” there are much fewer restrictions on the use of the property if using a DSCR Loan, including no limits on days it can be rented.

 

 

Can I use Airbnb income to qualify for mortgage?

Yes, for short term rental loans (or Airbnb loans) from Easy Street Capital documented income from Airbnb (or other similar sites like VRBO or independent booking platforms) can be used to qualify!

 

 

What's the difference between Short Term Rental Loans and AirBNB Loans?

Generally there is no difference between Short Term Rental Loans and AirBNB loans, as both are mortgage loans secured by investment properties that rent out on short stays. In recent years, many Airbnb investors have begun using the term “short term rental” instead of “Airbnb” and leasing their Airbnb property on multiple additional platforms, such as VRBO or their own personal booking site.

 

I am looking to purchase in a dedicated vacation market that is centered around specific seasons, is this okay?

Yes, we are happy to lend in areas that are dedicated “vacation towns” that have seasonal variations in revenue and when most comparable properties are also vacation rentals (i.e. ski or beach towns). Some DSCR Lenders have market restrictions such as only lending on short term rentals in markets that have 65% or greater occupancy (per AirDNA) or are not defined as rural, however Easy Street Capital has no such restrictions!

 

 

Can a DSCR Loan be used for Airbnb?

Yes! Our short term rental DSCR Loans fully allow properties that are rented on Airbnb, either solely, or on multiple short term stay rental platforms. Easy Street Capital does not require properties to have long-term leases

 

 

What does STR mean in mortgage lending?

STR stands for “Short Term Rental” or generally, properties that are on platforms such as AirBNB or VRBO and have tenants stay for periods of fewer than 30 days

 

 

I have partners in an LLC with split ownership of the property, is that okay?

Yes – in fact we recommend borrowing through an LLC (however borrowing as an individual is OK in most states). We require a full guaranty for anyone who has more than 25% of ownership of the entity and allow up to four separate guarantors on each Airbnb loan.

 

 

What is the minimum credit score for an Airbnb Loan with Easy Street Capital?

We will originate vacation rental loans with qualifying credit scores with a minimum of 640.

 

 

How is DSCR calculated for a short term rental loan with Easy Street Capital?

We calculate DSCR by taking monthly Projected Income (Rent or STR income) divided by your monthly payment – PITIA (principal, interest, tax escrow, insurance escrow and any HOA dues). No expenses besides taxes, insurance or HOA dues are considered in underwriting or qualification.

 

 

The property I am looking to finance does not have 12 months of STR operating history, will I still be able to get a loan and calculate DSCR?

Yes, in these cases, the Revenue portion of DSCR can be determined by the long-term rental market rent as determined by a third-party appraiser. In certain cases (based on experience and other factors), we can use data projections from reliable sources such as AirDNA or an appraisal-determined market rent based on short term rents or medium term rents instead of long-term rents.

 

 

What is Airbnb DNA?

AirDNA is a data company that analyzes airbnbs and short term rentals to provide projected average daily rates, occupancy percentage and monthly revenues for any eligible address! Check out our free AirDNA “Rentalizer” tool on this page above and check out more on airdna.co!

 

 

Does Easy Street Capital use AirDNA to qualify STR Loans?

Yes, Easy Street Capital is one of the few DSCR Lenders that use AirDNA data to qualify for AirBnb loans and pioneered the practice! Additionally, while most DSCR Lenders will use only a portion of the AirDNA projected revenue (generally 20% less than whats projected), Easy Street Capital’s vacation rental loans will use 100% of the projected AirDNA revenue if you qualify as a “Professional STR Investor.”

 

 

How do you qualify as a Professional Short Term Rental Investor with Easy Street Capital?

Easy Street Capital defines professional STR investors as investors that have three or more successful short term rental properties in the United States, each with at least 12 months of documented rental activity. Additionally, we will consider someone a professional STR investor in a specific market if they have just one successful short term rental property in the same market (with a year or more of history)

 

 

What is the minimum DSCR for an Airbnb loan from Easy Street Capital?

We will originate short term rental loans with a minimum DSCR of 0.75x.

 

 

What is the maximum number of units for a property that can be financed with a short term rental loan?

While most DSCR Lenders will limit vacation rental loans to a maximum of four units, Easy Street Capital provides short term rental loans for properties up to 10 units!

 

 

Can I refinance by Airbnb with a short term rental loan before owning the property for a full year?

Yes, Easy Street Capital’s short term rental lending program is unique in that we allow refinances (including cash-out refinances) without requiring documentation of a full year of operating history. We will utilize AirDNA or market rent projections to qualify and calculate the DSCR. The only requirement is that the property be fully up and running on Airbnb or similar platform, and you provide documentation of the listing and at least one completed booking.

 

 

What is “AirBnBRRRR”?

AirBnBRRRR is a twist on the popular “BRRRR Method” of real estate investing, where instead of buying a property that is already operating as a short term rental or Airbnb, or one that is fully turnkey and ready to rent immediately, the investor buys a property in need of renovations and rehab, and then once the property is restored to top condition, it is listed as a short term rental and any debt is refinanced into a long-term, lower-rate loan.

 

 

My Short Term Rental is a condo, is that eligible?

Yes, we lend on condos with loans consistent with our standard structure and rates, including both warrantable and non-warrantable condo projects. There are some limits on LTV and DSCR based on the characteristics of the condo structure. HOA dues are included in the PITIA payments when calculating the DSCR ratio.

 

 

What is a Condotel?

A Condotel is a condominium building with condo units that are exclusively or primarily utilized by investors as short term rentals. It shares similar characteristics as a hotel with similar amenities and management structure, but unlike a hotel, units are individually owned by investors.

 

 

What is a Condotel Loan?

A condotel loan is a mortgage loan in which the collateral is a condotel unit. Condotel loans are typically also short term rental loans.

 

 

Does Easy Street Capital do Condotel Loans?

Yes! Unlike many other DSCR Lenders that offer STR Loans, Easy Street Capital offers loans on condotels as part of the Short Term Rental Loans program!

 

 

If I get a Vacation Rental Loan from Easy Street Capital can I ever stay in the property?

DSCR Loans have strict rules against owners occupying the mortgaged properties, however, limited use is allowed, generally no more than 14 days per year.

 

 

What is a Medium Term Rental Loan?

A Medium Term Rental is generally a property that is leased for terms greater than thirty days but less than a full year, in between a short term rental and long-term rental. Medium Term Rental Loans are offered by Easy Street Capital through our DSCR Loan program, and can be qualified flexibly on a case-by-case basis, but similarly to our short term rental loan process.

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