Case Study: Miami STR Operator Acquires Her 3rd Airbnb Using DSCR

The investor: Interior designer in Doral, FL who began hosting short-term rentals in 2021. Two existing properties — a 2BR unit in Doral (STR through DSCR refi of a hard money loan) and a 3BR townhome acquired via bank statement loan. Combined annual Airbnb hosting revenue: approximately $88,000. Self-employed through her design business LLC. Tax return net income: $67,000 (after depreciation on two rentals, vehicle, home office). She had refinanced once before and understood the DSCR STR program mechanics — but had never done a DSCR purchase.

The property she found: A 3BR/2BA townhome in a gated community in Doral. Built 2018. Well-maintained, resort-style pool, controlled access gate — amenities appropriate for extended-stay business travelers, which is the dominant Doral STR market (Latin American corporate visitors, extended business stays from Brazil, Colombia, and Argentina visiting Miami-area headquarters operations).

Purchase price: $468,000. Seller: relocating to Colombia. Motivated. Listed 38 days.

Critical pre-application step — HOA STR permissibility: Before calling Mbanc, before looking at PITIA, she called the HOA management company. Question: does the HOA permit non-owner-occupied short-term rental? Answer: yes, subject to a 7-night minimum stay. Written confirmation received.

STR Property? Confirm Permissibility First, Then Run the DSCR.

Mbanc NMLS #38232 | FL #MLD1287 | Equal Housing Opportunity Lender

The Pre-Application Analysis

With HOA permissibility confirmed, she called Mbanc. Her loan officer’s first question was not about her income — it was about the property. Address, purchase price, bedroom count, HOA.

Preliminary DSCR estimate (pre-appraisal):

The loan officer pulled Miami-Dade county appraisal data for the specific parcel: $7,020/year in taxes ($585/month). He confirmed the HOA: $295/month. He got a Florida homeowners insurance estimate from his database: $188/month (to be confirmed with actual quote).

For STR income, he used his knowledge of the Doral extended-stay STR market: 3BR properties with gated community amenities in the Doral business corridor typically generate $4,200–$5,500/month in appraiser STR market income. The actual appraisal would determine the qualifying figure, but this range gave a usable estimate.

At 75% LTV ($351,000 loan):
P&I at 8.50% (STR DSCR carries a slight rate premium): $2,699/month.
Taxes: $585/month.
Insurance estimate: $188/month.
HOA: $295/month.
Estimated PITIA: $3,767/month.

DSCR at midpoint of income range ($4,850): $4,850 ÷ $3,767 = 1.29 — strong STR standard.
DSCR at conservative end ($4,200): $4,200 ÷ $3,767 = 1.11 — still solid standard.

She was comfortable. Even a conservative appraisal would produce standard STR DSCR. She made the offer.

The Offer and Contract

She offered $455,000. Seller countered at $462,000. She accepted.

Loan officer recalculated: at $462,000 purchase, 75% LTV: $346,500 loan. P&I at 8.50%: $2,661. Revised estimated PITIA: $3,729. DSCR at conservative $4,200: $4,200 ÷ $3,729 = 1.13. Still strong.

Contract executed Day 1. Application submitted Day 2.

The Appraisal — Where STR DSCR Lives or Dies

The STR appraisal takes longer than a standard market rent analysis. The appraiser must identify 5–8 properties that are actively operating as short-term rentals in the same market — same general area, similar bedrooms, similar amenities, similar minimum stay structure — and use real-world STR revenue data from platforms like AirDNA and direct market data to determine what those properties actually generate monthly on a normalized annual basis.

For Doral specifically: the appraiser identified 6 comparable STR properties within a 2.5-mile radius — all 3BR units in gated communities with similar resort-style amenities, all operating as business traveler extended-stay rentals with 7+ night minimums.

The 6 comparables’ monthly STR income data (normalized annual ÷ 12):

The appraiser applied adjustments for the subject property’s specific characteristics — 2018 build (newer than comps 3 and 6), gated with pool and gym (matches upper comparables). Appraiser STR market income conclusion: $4,800/month.

This was within her pre-application range and above the conservative floor she had modeled.

Appraised value: $471,000 — $9,000 above purchase price. LTV calculated on purchase price ($462,000), not appraised value.

Final DSCR Calculation

Actual confirmed inputs:
Loan (75% LTV on $462,000): $346,500.
P&I at 8.50%, 30-year: $2,661/month.
Miami-Dade taxes (actual parcel): $585/month.
Insurance (actual Florida quote from Doral carrier): $168/month.
HOA (confirmed): $295/month.
PITIA: $3,709/month.

DSCR: $4,800 ÷ $3,709 = 1.29. Standard STR DSCR.

What Was Never In the File

Her LLC financials: never requested.
Her Airbnb dashboard: never reviewed.
Her two existing properties: never discussed for income purposes.
Her tax return showing $67,000 net income: never submitted.
Her design business deposits: never analyzed.
Her SuperHost status: irrelevant to qualification.

The file contained: loan application, property information, appraisal with STR income analysis, Miami-Dade tax record, Florida insurance quote, HOA letter confirming STR permissibility, 2 months of bank statements showing $127,500 in the account (down payment + reserves + closing costs).

That’s the complete DSCR STR file.

The Timeline

Day 1: Contract executed.
Day 2: Application submitted.
Day 3: Appraisal ordered (standard appraisal + STR income analysis engagement).
Day 5: Appraisal inspection completed (appraiser visits the property — she did not need to be present).
Day 12: STR income analysis completed, appraisal report delivered. Market income: $4,800. Appraised value: $471,000.
Day 15: Loan in processing. HOA letter, insurance quote, tax record confirmed.
Day 19: Conditional loan approval.
Day 22: Clear to close.
Day 28: Closing at title company. She signed. Keys transferred.

28-day close including STR income analysis (standard appraisal would have been 21–24 days).

Post-Close Performance — The First Year

She listed the property on Airbnb with 7-night minimum within 48 hours of close. First booking 4 days after listing. Property management by her own system (she self-manages all three properties).

Q1 (first 3 months):
Month 1: $3,900 (first month, establishing listing reputation)
Month 2: $5,100
Month 3: $5,800
Q1 average: $4,933/month — 3% above appraiser estimate

12-month actual:
Average monthly gross revenue: $5,210/month — 8.5% above the $4,800 appraiser market income.

After PITIA ($3,709), cleaning and supplies (~$380), credit card fees (~$125): average net cash flow: $996/month.

The appraiser’s $4,800 was conservative by 8.5%. The deal was stronger than the approval baseline assumed.

What This Case Study Teaches

1. HOA permissibility is the gate that must open first. Four phone calls over two days determined whether this deal was possible. Not the appraisal. Not the income analysis. The HOA’s written confirmation that STR is permitted. This step costs nothing and must happen before any DSCR STR application.

2. The appraiser’s market income was conservatively accurate. She expected $4,200–$5,500. The appraiser produced $4,800. Her actual performance was $5,210. The appraiser’s analysis — not her projections — was what qualified the loan, and it was appropriately conservative while still reflecting real market conditions.

3. Self-employed income complexity is completely irrelevant to STR DSCR. Her design business, her LLC, her $67,000 tax return — none of it mattered. The 3BR townhome in Doral’s business-traveler STR corridor qualified itself.

4. The 28-day STR DSCR close requires active coordination. The STR income analysis adds 5–7 business days to a standard appraisal. Investors who expect 21 days on an STR deal should budget 26–32 days.

Investor Profile: 3-Property STR Portfolio Post-Close

After this acquisition, her portfolio:
– Property 1 (Doral 2BR): $3,800/month average STR income. PITIA: $2,980. DSCR: 1.27. Net cash flow after PITIA: $820.
– Property 2 (Doral 3BR townhome, bank statement loan): $4,200/month average STR income. PITIA: $3,450. Net: $750.
– Property 3 (this acquisition): $5,210/month average. PITIA: $3,709. Net: $1,001.

Combined portfolio net cash flow after PITIA: $2,571/month.

Her design business income: not in any of these files except Property 2 (bank statement loan). Her LLC, her depreciation schedules, her $67,000 net income: never discussed in 2 of 3 loan processes.

Borrower details composite and anonymized. Not a commitment to lend. FL #MLD1287 | Mbanc NMLS #38232 | Equal Housing Opportunity Lender

Transaction Lessons: Miami STR Investor Scaling to Third Property

The Miami STR case study illustrates one of the most important principles in DSCR portfolio building: not every market you know well is the right market for DSCR expansion. This investor knew Miami deeply — but the third acquisition required going where the math worked, not where familiarity was comfortable.

Key takeaway 1 — Property selection follows the math:
Two successful Airbnb properties in Miami created the temptation to acquire a third Miami property. The DSCR analysis killed every Miami candidate: HOA + taxes + coastal insurance + price-to-rent compression produced DSCRs of 0.65–0.82 on every evaluated property. No program.

The right response: expand the geographic search, not lower the DSCR bar.

Key takeaway 2 — STR comps determine financing:
The investor’s Miami properties performed at $8,000–$12,000/month in actual Airbnb revenue. This personal performance is irrelevant to DSCR underwriting — the appraiser’s market rent analysis determines qualification. Investors who confuse their personal platform performance with lender-qualifying income make incorrect assumptions about what they can finance.

Key takeaway 3 — The Tennessee pivot was the right move:
Rutherford County TN ($295K–$330K SFRs) offered long-term rental DSCR at 1.05–1.12 — viable and scalable. The investor’s third property was acquired in Murfreesboro for $305,000 at 80% LTV, DSCR 1.09, standard program. No Miami HOA, no coastal insurance, 0.76% property taxes.

Key takeaway 4 — Two-state portfolio is the sophisticated strategy:
Miami for STR income (leveraging existing property management relationships). Tennessee for scalable DSCR portfolio building. Geographic diversification across income types and risk profiles.

The investor’s portfolio at transaction 3: two Miami STRs (paid off or conventionally financed) + one Tennessee DSCR SFR. Goal: add 2 more Tennessee SFRs annually. DSCR files: zero personal income documentation.

Not a commitment to lend. Mbanc NMLS #38232 | Equal Housing Opportunity Lender