Mortgage on Airbnb property

[Craig McLaughlin]

I am thinking about using a recently acquired property for solely Airbnb. I am curious if anybody has been able to get a bank to do a cash out refinance on an investment property that has no lease? My plan is to buy with cash, do a little updating, furnish it, put on Airbnb, and then 6 mo to a year later, do a cash out refinance. Thanks in advance.

[Patricia Taveras]

@Craig McLaughlin

Hi Craig. I just did a cash out refinance on two with Visio Lending. They are DSCR loans so the interest rate is higher than bank loans. They used the historical income of the properties to qualify them, and the title and mortgage have to be held in an LLC. The properties have been running as STR since 2019. There are other lenders out there who will do this as well.