Air BNB Financing Methods

[Jordan Davis]

Hey guys! My name is Jordan and I have actually have been doing STR on AirBnB using the rental arbitrage method with great success. I am happy to have done it and I am happy to scale!

Speaking of scaling, I am reaching out to anyone with much knowledge on ways anyone has funded actually buying a property for STR and what worked for you guys. I've had booming success with the rental arbitrage in the Idaho market but would like to peruse options out of state on potentially owning a property.

What funding options is everyone aware of for STR?

[Joshua Kolnitys]

Hey Jordan! Glad to hear about your STR success!!!

I've been in the STR world for about 4 years now and I think you've got a great question! With still holding something zoned residential I've really only been able to come up with one solution: I've essentially structured my STR property into an LLC and then took out a business loan after showing at least 7 deposits in my business account for three or more months in a row. The bank is essentially looking at my business instead of the house, and they're lending based on the revenue the business is producing. The more deposits and the larger the deposits determine the amount of money they're willing to lend.

I'm not sure if this is quite the answer you're looking for, but its what i've done twice now and it is the only thing i've really been able to put together thus far. Kinda a weird way to go about it, but hey, it works.