All Forum Posts by: Zach Edelman

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.