Illustrative Scenario: Financing a Phoenix Short-Term Rental With No Booking History
“David” is a composite, hypothetical borrower profile illustrating a common short-term rental DSCR scenario — not a real, identified customer.
David, based in Colorado, wanted to buy a short-term rental near Phoenix but had no operating history for the property since it wasn't yet in his hands.
The challenge
Without a booking history, some lenders won't count STR income at all. In this illustrative example, David's matched lender instead used a licensed appraiser's short-term rental market analysis to project income based on comparable properties in the area.
How the numbers worked (illustrative)
The projected STR income came in around $4,200/month, against an estimated debt service near $3,100/month — a DSCR of roughly 1.35 in this hypothetical scenario, which is on the stronger end of typical lender preferences.
Illustrative outcome
The example closes in the name of an LLC David set up for liability purposes, with the lender comfortable with entity title. Actual approvals depend on the specific lender, appraisal, and local short-term rental regulations, which should always be confirmed separately.
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