Airbnb has revolutionized the real estate industry and exhibited true staying power. The short-term rental industry has experienced significant growth, offering new opportunities for both property owners and hosts. 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:

With the right tools, hosts can accurately estimate the earning potential and profits of their properties, helping them make informed decisions and maximize returns.

• Quickly estimate your Airbnb refinance options

• See how much cash you can pull out

• Analyze your property’s cash flow

• Understand the many benefits of using a rental calculator for hosts, such as improved decision-making and increased profitability

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. Airbnb hosts can also use refinancing as a strategic tool to make better investment decisions, optimizing their property portfolios for maximum returns.

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. Accurate market analysis and competitive analysis are essential for Airbnb hosts to make informed decisions, as they provide reliable insights into property performance and market trends. 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. Airbnb calculators, Airbnb estimators, and short term rental calculators are essential tools for analyzing Airbnb income, Airbnb revenue, and annual revenue.

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, using up to date data to analyze trends and seasonality. They require property details such as property type, number of bedrooms, expected number of guests, and other details to generate accurate estimates. Key metrics used in these calculations include occupancy, occupancy rate, Airbnb occupancy rate, and average daily rate, all of which help provide a clear picture of potential Airbnb income and Airbnb revenue, 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

• The specific property address and details (such as number of bedrooms, bathrooms, and maximum guests) to generate accurate estimates

• Accounting for cleaning fees, which are often paid by Airbnb guests and should be considered separately from owner expenses

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. These calculators help estimate cash return, profit, and earning potential for each specific property, allowing you to make informed investment decisions.

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. Property managers and real estate agents can assist in gathering documents and providing access to essential market analysis data needed for the application. You need to:

1. Find a lender

2. Gather documents

3. Submit an application

4. Calculate your DSCR

5. Order the 1007 rent schedule

6. Have the lender underwrite your loan

7. 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. Compared to traditional financing for term rentals and long term rentals, DSCR loans are especially popular for short term rentals due to their flexibility and focus on property income rather than personal income.

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. DSCR loans can also help investors evaluate if a vacation rental is worth the investment and support short term rental investment strategies by focusing on projected rental income and market potential.

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. Analyzing Airbnb listings, VRBO listings, and properties for sale in the same area can provide valuable market analysis, helping you make informed investment decisions and maximize your returns.

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. mbanc Invest supports hosts, property managers, and Airbnb investors in building their portfolio, optimizing hosting, and answering questions like ‘how much can I make’ from renting on platforms such as Airbnb and VRBO. Our passion is helping you master your market. To experience the mbanc Advantage, talk with our team today