BRRRR + Airbnb (short term rental)

[Kyle Moore]

Any success stories combining the BRRRR method and Airbnb? This is a topic I do not see discussed here very often.

I have two Airbnb properties that cash flow phenomenally. More than double what a long term tenant would ever pay. I have bought both properties using conventional financing but want to try the BRRRR method on my next property.

Has anyone been able to use STR income like this to qualify for a cash out refi? Any other pitfalls form combining STR and BRRRR?

[David M Trapani]

Hello Kyle,

Yes, it is doable.

Recently did cash out refinance on two STR's (nearly simultaneosly). One in Palm Springs, one in La Quinta, CA.

The PS house appreciated (per appraisal) approx. $150k in 1 year. Appraisal on the LQ house was a bit underwhelming
(low compared to comps), but still enough for cash out.

Lenders are shy of STR income (as my lending broker expressed). Solution was to "snooze" the listings during application and refi process. Technically, not operating as STR at that time.

Generated $117,000 cash out PS house, moved it with the existing PS private lender $250K note to acquire additional STR LQ pool home.

Approx. $68,000 cash out from LQ #1 for reserves.

Results so far very good. Now back to desert for 30 days to ramp up LQ #2 (furnish, decorate, lighting, light comsetic reno, obtain permit, photograph & launch) to get the cash flowing.