Already leased
Review the executed lease, monthly rent, expiration date, concessions and available payment history. The lender determines accepted rent and supporting requirements.
Long-term rental financing
Buy or refinance a traditional rental.
Let the rent lead the analysis.
Use lease or market-rent assumptions to compare estimated rates, payments and cash required. Test whether a 12-month rental supports the financing and cash flow you want.
Free registration required to view estimated rates and save your research. No sales call required. Contact our team when you choose. Estimates are subject to lender review.
Start with the property’s rental position.
Vacant or newly acquired
Research comparable rent and the costs of preparing and leasing the property. An appraiser-supported rent schedule may be required; accepted methods vary.
Multiple rental units
Organize each unit’s lease, rent and occupancy. Eligibility, permitted unit count and income treatment depend on the program and property.
Income needed to support the loan
Calculate coverage using the lender’s definitions.
DSCR compares qualifying rental income with a lender-defined payment obligation. Many residential rental programs include principal, interest, taxes, insurance and applicable association dues.
The accepted rent can differ from the amount in your operating plan. Confirm how current leases, market rent, vacancy and any adjustments are treated.
Property income may be central to qualification, but credit, liquidity, reserves, ownership, leverage and property requirements still apply.
Understand DSCR financingHypothetical required-rent calculation
Assume a monthly payment obligation of $2,500 and a target ratio of 1.20.
Required qualifying rent: $3,000 per month.
If accepted rent is $3,250, illustrative DSCR is 1.30.
Calculation example—not offered terms, approval or a universal lender target. This ratio does not include every operating expense and does not establish profitability.
Separate the qualification test from operating cash flow.
A lease is useful evidence. It does not remove vacancy, maintenance or capital costs.
Income you can support
Review rent, concessions, collection history and renewals. Include a realistic leasing-gap assumption.
Expenses beyond the loan
Allow for management, repairs, maintenance, owner-paid utilities and other property costs. Avoid counting taxes and insurance twice.
Cash for larger work
Plan for turnover, appliances, roof or system replacement and other capital needs. A positive monthly remainder may still be too small for the property’s risks.
Test a month without collected rent.
Suppose scheduled rent is $3,250 per month, annualized operating costs average $750 per month excluding debt service, and debt service is $2,000 per month.
With 12 collected months, the illustrative monthly remainder averages $500. With one month of uncollected rent, annual rent falls to $35,750 and the average remainder falls to approximately $229 per month.
Hypothetical operating example before additional capital reserves. Collection timing, expense changes and other costs affect actual results. This is separate from the DSCR example above.
Keep liquidity in the decision.
A larger down payment can reduce debt and payment under comparable terms. It also leaves less cash for repairs, turnover and future opportunities.
Compare the property’s cash needs after closing alongside the payment—not just the lowest rate.
Compare loan structuresPurchase, refinance or cash out?
Purchase financing
Compare available capital, down payment, full cash to close, leasing costs and reserves. Review income evidence before depending on a projected loan amount.
Rate-and-term refinance
Compare the current rate, balance, remaining term and exit costs with the proposed structure. A lower payment can reflect a longer repayment period.
Cash-out refinance
Estimate proceeds after debt payoff and charges, retained equity and the new payment. Confirm leverage, seasoning and use-of-funds requirements.
Compare points, payment and flexibility together.
Review rate, points, other closing costs, prepayment provisions and repayment structure where eligible options are available. Include the period you expect to keep the loan.
A zero-point option can reduce upfront costs, but does not remove other closing costs. An interest-only period, where available, does not reduce principal through scheduled payments.
Explore zero-point options
Prepare the property record for review.
- Verified address and property details
- Executed leases and available rent/payment records
- Purchase price or estimated value
- Current loan balance and terms for a refinance
- Ownership details, financing objective and available capital
- Known repair needs and operating assumptions
Formal financing requires additional borrower and property documentation through the appropriate secure process.
Buying with an LLC or partners?
Some programs permit eligible entities. Confirm lender requirements before transferring title or committing to a structure. Your attorney and CPA should review ownership and tax decisions.
Multi-member LLC considerationsGet value before requesting contact.
1. Analyze the rental
Verify the property and review income, expenses and capital assumptions.
2. Save and compare
Keep the property in your workspace and review eligible preliminary financing choices.
3. Request human review
Our team reviews program fit and evidence gaps, then coordinates the application process if you proceed.
Long-term rental financing questions
Will the lender use the rent in my lease?
The lender determines accepted income. Lease terms, comparable market rent, occupancy and other requirements can affect the amount used.
Can a vacant rental qualify?
Potentially. Some programs use appraiser-supported market rent or other permitted evidence. Property condition, borrower eligibility and documentation still matter.
Is DSCR financing always better than a conventional investment loan?
No. Compare eligible conventional investment financing where your personal income, ownership and property circumstances fit. Costs and requirements vary.
Does a positive DSCR guarantee positive cash flow?
No. The lender’s coverage calculation may exclude operating and capital costs included in your ownership plan.
Can I change a short-term rental to long-term use?
Evaluate achievable rent, local requirements, association rules, insurance and the terms of the existing loan. Review material changes with the appropriate professionals.
More financing answers · Furnished mid-term rentals · Short-term rentals
Start with the rent.
Prepare a clearer financing decision.
Analyze the property. Compare the financing. Prepare the transaction.
Preliminary estimates are not an application, approval, rate lock or commitment. STR Advisory arranges eligible business-purpose financing through third-party lenders and does not fund loans, make credit decisions or guarantee income. Final terms depend on verification, underwriting, documentation, borrower and property eligibility, applicable licensing and state requirements.