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Playbooks

The Short-Term Rental DSCR Playbook

Airbnb and VRBO underwriting on DSCR: how STR income is treated, the lenders who use projections vs trailing history, and the seasonality trap.

· 1 min read

Outline — pending named byline + LO review.

Who this is for

  • Investors buying or refinancing Airbnb / VRBO properties
  • Markets where STR yields beat long-term rents

How STR income is treated

  • Projection-based (AirDNA-style) vs trailing 12-month operating history
  • Annual blend vs peak-month income — the seasonality trap
  • Markets and regulations that lenders flag

Scenario examples

  • [Coastal STR, peak $5,500/mo, annual blend much lower]
  • [Established STR with 12-month history]

Qualification matrix

Representative STR DSCR parameters (to verify)
Income methodTypical max LTVNotes
Trailing 12-mo historyBest treatment
Projection-basedMore conservative

What typically goes wrong

Indicative rate range

Add once LO-reviewed.

Estimates only. Actual rates, terms, and approval subject to lender underwriting, appraisal, and qualifying criteria.

We are currently licensed to originate in Texas. For other states this page is educational only and is not an offer to lend.