Airbnb has revolutionized the real estate industry and exhibited true staying power. For most investors, there comes a time when they want to refinance an Airbnb. Restrictive traditional loan requirements can limit investors who don’t work a typical 9-5. Fortunately, using a preeminent rental property calculator like mbanc Invest, you can use an investment property’s cash flow to refi your Airbnb. Here’s how to make your property work for you:
Why Refinance an AirBnB?
Refinancing an AirBnB is a financial maneuver that can help you gain a better hold on your finances, reduce expenses, and help guarantee a brighter financial future.
Better yet, using an investment property and a premier rental property calculator like mbanc Invest, you can leverage investments to refi an AirBnB. There are several reasons to consider refinancing, including:
- Reduced interest rates and mortgage payments
- Adjusted loan terms
- Cashing out home equity
- Increasing rental income
- More available funds for property improvements and other investments
- And more
Still, refinancing an Airbnb using investment property income is daunting without expertise. Luckily, like Airbnb has revolutionized the industry, rental property estimators are leveling the playing field by empowering borrowers to get the financing they need.
How to Refinance an Airbnb With an Investment Property
Rental Income, DSCR Loans, and Airbnb Rental Calculators
One of the most common ways to refi an AirBnB with an investment property is through alternative financing solutions like Debt Service Coverage Ratio (DSCR) loans.
Lenders assess eligibility for loans based on the income an investment property generates and not your personal income. Still, qualifying for these loans necessitates providing evidence of investment property cash flow, which is challenging without expertise.
Fortunately, innovative rental property calculators like mbanc Invest are an equalizer. These estimators generate comprehensive short-term rental analytics, making it easier and faster than ever to obtain this financing through non-QM programs.
How to Qualify for a DSCR Loan Using a Rental Property Calculator
Without an innovative Airbnb rental calculator like mbanc Invest, qualifying for a DSCR loan is complex without extensive experience. For refinancing, borrowers must provide information about their property, the cash flow it generates, and expenses, including:
- Rental history from the property
- The property’s address for collateral
- The property’s purchase price or appraised value
- Monthly mortgage payments (principal, interest, taxes, and insurance)
- The down payment amount
- Monthly expenses, like HOA fees, restocking, maintenance, and property management
- The vacancy rate (typically between 5% and 10%)
- Protected short-term rental income
- A coverage ratio that usually ranges between 1.0 and 1.5
Still, calculating, projecting, and balancing these figures requires specialized skills. Fortunately, Airbnb rental estimators provide comprehensive reports instantly that contain all the short-term rental data you need about a prospective property.
How to Apply for DSCR Loans
While it can vary, the process for applying for a DSCR loan to refinance an Airbnb typically has the following steps. You need to:
- Find a lender
- Gather documents
- Submit an application
- Calculate your DSCR
- Order the 1007 rent schedule
- Have the lender underwrite your loan
- Wait for closing and approval
Throughout this process, using short-term rental data gathered from rental property estimators like mbanc Invest is essential to obtaining financing.
Why DSCR Loans are Ideal Options to Refinance an Airbnb
DSCR loans are the leading financing solution for people interested in using cash flow from an investment property to refi their Airbnb property.
DSCR loans do not require borrowers to qualify using personal income, eliminating the need for submitting complicated income statements and tax returns. For some, this is advantageous because they are self-employed or have a complicated financial situation.
Better yet, procuring DSCR loans is typically faster than conventional financing, and they often have more flexible underwriting requirements.
Contact Us to Refinance Your Airbnb Using an Investment Property
Purchasing an investment property is an excellent way to supplement your income and secure a brighter financial future. For many real estate investors, there comes a time when they may want to refinance an Airbnb. Unfortunately, due to the nature of investing, obtaining financing can be an uphill battle. With the help of a rental property calculator, you can acquire a DSCR loan to use investment property income to refi your Airbnb.
Fortunately, with a leading estimator like mbanc Invest, you receive the short-term rental analytics you need for loan approval faster and easier than ever. Our passion is helping you master your market. To experience the mbanc Advantage, talk with our team today.