All Forum Posts by: Selina Giarla

For accurate STR underwriting, you'll want tools that can provide real-time market data. Here are some solid options:

AirDNA & Rabbu – Provide estimated ADR, occupancy rates, and revenue projections (though they often underestimate actual performance—we’ve consistently outperformed their projections at Stayshores).
Pricelabs Market Dashboards – Great for dynamic pricing insights and real occupancy trends.
STR Insights – More tailored for finding the best-performing STR markets.
For underwriting, I use mypropertystats.com. They have an option where you can input daily rates if you are underwriting a short term rental.

Debt & Loan Terms

STR financing is slightly different from traditional long-term rental loans:

📌 DSCR Loans (Debt-Service Coverage Ratio) – Lenders will look at projected STR income instead of personal income to qualify. Rates are slightly higher than conventional loans, but terms vary.
📌 Conventional Investment Loans – If the property qualifies as a second home and meets occupancy requirements, you may secure a better rate.
📌 Portfolio & Commercial Loans – Good for scaling multiple STRs under one loan, though they usually require stronger financials and reserves.

Loan terms? Rates tend to be 0.5% to 1% higher than standard investment loans, and lenders may require 15-25% down. Loan lengths vary (15-30 years), and interest-only options are sometimes available for cash flow optimization.

Quote from @Jacob Morgenstern:

For accurate STR underwriting, you'll want tools that can provide real-time market data. Here are some solid options:

AirDNA & Rabbu – Provide estimated ADR, occupancy rates, and revenue projections (though they often underestimate actual performance—we’ve consistently outperformed their projections at Stayshores).
Pricelabs Market Dashboards – Great for dynamic pricing insights and real occupancy trends.
STR Insights – More tailored for finding the best-performing STR markets.
For underwriting, I use mypropertystats.com. They have an option where you can input daily rates if you are underwriting a short term rental.

Debt & Loan Terms

STR financing is slightly different from traditional long-term rental loans:

📌 DSCR Loans (Debt-Service Coverage Ratio) – Lenders will look at projected STR income instead of personal income to qualify. Rates are slightly higher than conventional loans, but terms vary.
📌 Conventional Investment Loans – If the property qualifies as a second home and meets occupancy requirements, you may secure a better rate.
📌 Portfolio & Commercial Loans – Good for scaling multiple STRs under one loan, though they usually require stronger financials and reserves.

Loan terms? Rates tend to be 0.5% to 1% higher than standard investment loans, and lenders may require 15-25% down. Loan lengths vary (15-30 years), and interest-only options are sometimes available for cash flow optimization.

This is an excellent write up for DSCR loans for STRs. If you dive deeper, STR lenders that do DSCR (and do it properly) typically use any/all of the following three data points for deriving the STR rental income for the loan, and thus qualifying the transaction's DSCR:

- AirDNA

- Seller/Owner trailing twelve month booking history

- STR 1007/STR narrative analysis from appraiser

Hope this look under the hood helps!

A short term rental will have slightly higher interest rate and require lower loan to value limits 

BNBCalc is the underwriting tool for STR I like using the best, but as others have said, you really have to roll up your sleeves and dig into comparable properties. I like BNBCalc because you can set up defaults and plug properties in much faster than a spreadsheet, adjust them more efficiently, and know there isn't a formula error creeping around in the background from a typo.

Regarding how to roll up your sleeves and dig into comparables, John Bianchi has a video series on YouTube that's an MBA in forecasting STR income. He has a method where you build a buy box by analyzing top performers in the market, comb through the market looking for them, and then set up searches for your buy boxes so you create a steady stream of listings that fit your buy box without wasting time or forgetting to go back and look at that market you were interested in a few weeks ago. This method is far superior to going to Zillow, looking at random listings, and running them through a calculator. He teaches you how to look at a market, understand why specific properties are performing how they are, and ID the must-have features and amenities.

Also @Selina Giarla , this is just for your consideration , I know one CU that has 10YARM "Movable" product that their ARM is always have spread of negative 50-75 bps compare to 30YFRM.

Currently they have:
10/10 40 Years APR 6.440% Payment per $1,000 $5.77
30YFRM 6.875% APR: 6.892% Payment per $1,000 $6.57

Quote from @Selina Giarla:

Quote from @Jake Andronico:

@Selina Giarla

In Reno, NV w/ 50% down there are a ton of turnkey deals. We're seeing new builds as some of the best value right now because they're looking to offload their inventory before the end of the year. 

Would be happy to send analysis. 

 Hi Jake - yes I would love to hear more about these. The nevada state/city tax is higher than the MA state tax I pay so I would also need to factor in the income tax to be paid there in my analysis.

 Nevada has no state income tax and the 4th lowest property taxes in the United States.  Property taxes do not assess on the sale of a property. 

I would stop for a second.   With your current investments how many more do you need to hit your number?  With the returns you currently receive?  Both cash flow and expected appreciation.  

Even if you could hit your number how do you scale?  Financing, downpayment, plumber, property manager by towns, lawyer, real estate agent, personal time, etc.  

I would recommend you change your REI investment approach.

Let us know how much you need to scale to hit your number If you can't do it, then let's discuss another REI model.

Quote from @Selina Giarla:

Quote from @Guy Gimenez:

Quote from @Selina Giarla:

Quote from @Guy Gimenez:

@Selina Giarla

Sounds like your sourcing your "deals" from the MLS (retail market), which means you're paying retail most of the time. It's always hard to cash flow retail deals which is why most investors market heavily to locate motivated sellers. Profitable deals are found primarily off market through dedicated marketing or through relationships.

 I would love to understand how to get into the club of these off-market deals. Where do I start and what makes them "off-market"? You are correct, I am only involved in searches on zillow, crexi, and the like. Would love your guidance here.

 Off market sellers need to find you, not vice versa. 

 1. SEO

2. Pay Per Click

3. Social media ads

4. Relationships with other investors and/or bird-dogs (ie deal finders)

5. Driving for dollars

How and on what platform do I let them know I am looking? LOL

You'll need a website / landing page; FaceBook and Instagram account. If you're not familiar with social media marketing or SEO, you'll need to hire a specialist who can get you off the ground and running. It's expensive though...always has been, always will be. But that's where the distressed sellers are found. You can also try direct mail to targeted households. The return will be lower but it is less expensive.