Co-Living & STR Blueprint · 80% Purchase / 75% Refi · DSCR Loans in Tennessee — Nashville, Gatlinburg/Pigeon Forge Cabin STR & Memphis Rental Financing
Short-Term Rental (STR) AirDNA & Vacation Rental DSCR Strategy
Direct Strategy Summary: Short-Term Rental (STR) DSCR underwriting qualifies Airbnb and VRBO properties using either a 12-month historical platform payout ledger or Day-1 AirDNA Rentalizer projections (at 60th–75th percentile occupancy with a 10%–20% underwriting haircut) without personal DTI.
Acquisition Income Source
AirDNA Rentalizer (Day-1)
Requires ≥ 5 active comparable STRs within a 1–3 mile radius and 60%+ market score.
Refinance Income Source
12-Mo Airbnb/VRBO Ledger
100% of trailing 12-month gross payouts (cleaning fees included when documented).
Municipal Permit Audit
Active STR License / HOA OK
Must verify no municipal ban or HOA CC&R prohibition on <30-day stays.
Reserve Requirement
6 Months PITIA
Stocks, retirement accounts (at 60%–70%), and business LLC operating accounts qualify.
Step-by-Step Underwriting & Execution Sequence
STEP 01
Verify Municipal Zoning & HOA CC&R Eligibility
Confirm the parcel allows transient lodging (<30 days) and obtain the city/county STR permit requirements.
STEP 02
Run AirDNA Rentalizer & Comp Density Check
Validate projected annual revenue at the 65th percentile and apply a 15% lender expense haircut.
STEP 03
Select 10-Year Interest-Only Option to Maximize Cash Flow
Lowering the monthly debt-service denominator via 10-year IO frequently lifts STR DSCR by +0.15x to +0.22x.
Frequently Asked Underwriting Questions
Can I buy a brand-new Airbnb with no prior booking history using a DSCR loan?
Yes. Wholesale AirDNA DSCR programs underwrite new STR purchases up to 75%–80% LTV using third-party AirDNA projections or an STR-certified appraiser Form 1007 addendum.
Do STR platform management fees get deducted from DSCR gross income?
Most wholesale DSCR conduits apply a flat 10%–20% haircut to AirDNA gross revenue projections or use 100% of actual net Airbnb host payouts.