ADR — average daily rate
An average nightly rate for occupied rental nights. Check how fees, discounts and cancellations are treated in the source data.
Investor glossary
Understand rental income, debt service coverage ratio, loan costs and cash planning. Use these definitions alongside your property research and financing comparisons.
An average nightly rate for occupied rental nights. Check how fees, discounts and cancellations are treated in the source data.
Revenue documented through available rental and payment records. A lender determines whether the records are acceptable and what adjustments apply.
Checking that the entered address identifies the intended property. Verify returned property facts and correct errors; address verification alone does not verify ownership or rental eligibility.
The schedule for paying down loan principal over time. A longer schedule can lower the payment while extending repayment.
A professional opinion of property value prepared for a stated purpose. The lender determines its appraisal requirements.
Entity formation documents for an LLC. The lender may require these and additional entity records.
Funds potentially available for the transaction and related needs. Identify other commitments and lender verification requirements before relying on the amount.
A tax measurement used in determining matters such as depreciation or gain. It is not automatically the current property value or loan amount. Ask your CPA to determine the applicable basis.
A tax concept involving accelerated deductions for certain eligible property. Eligibility, timing, elections and treatment require CPA review; no percentage or benefit is promised here.
Financing intended for an eligible business or investment purpose. Requirements and documents must match the actual purpose and transaction.
A property-income comparison calculated using net operating income divided by a stated value or price. Specify the income assumptions and exclusions; cap rate does not include financing effects.
Spending on larger property work or replacements in an ownership plan. Accounting and tax treatment require professional review.
The amount remaining after the income and outflows included in your model. State whether it includes debt service, reserves, capital spending and taxes so comparisons are meaningful.
The planned funds required for the transaction and initial operation. Distinguish closing cash from repairs, furnishings and reserves.
An annual cash-flow measure divided by the cash invested in the model. Results depend on which cash flows and initial costs are included.
A refinance that may provide proceeds beyond existing debt payoff and transaction charges. Availability, net proceeds and use-of-funds requirements vary.
Charges associated with completing a transaction. These differ from down payment and may also need to be distinguished from prepaid items and reserves.
Other rentals used as research evidence. Their relevance depends on location, size, amenities, condition, rental model and the quality of the data.
A tax-analysis concept involving the treatment of property components. Scope, classification and resulting tax treatment belong with qualified professionals; a property inventory alone does not establish them.
Qualifying income divided by the lender-defined payment obligation. Accepted income, payment components and minimum coverage vary. DSCR is separate from operating cash flow.
Scheduled loan payments. State which components are included; operating and lender calculations may use different definitions.
A tax concept for recovering qualifying property costs over applicable periods. Your CPA determines eligibility, basis, timing and reporting.
The buyer’s contribution toward the price apart from the loan. It is not the entire cash requirement for an acquisition.
An eligible legal entity identified as the borrower. Requirements for documents, authority, members and guarantees depend on the lender and transaction.
The difference between an assumed property value and debt against it. It is not necessarily available cash; refinance proceeds depend on underwriting and costs.
An interest rate that remains fixed for the specified period under the loan documents. Taxes, insurance and other payment components may still change.
Rental revenue before the costs and adjustments excluded from that figure. Confirm how the data source handles platform fees, taxes, cleaning and refunds.
A person or entity with obligations under a guarantee. Review the actual documents with an attorney; ownership and guarantee obligations are different questions.
Charges from a homeowners association. Include applicable dues in the expense and financing models without counting them twice.
STR Advisory’s review of property and financing information, possible lender fit and gaps. It is not a lender approval or commitment.
A change applied to an income figure for a model or underwriting method. Identify who applied it and why; there is no universal adjustment for all rentals.
A period when scheduled payments cover interest under the loan terms without scheduled principal reduction. Review later payment and amortization changes.
A legal entity structure. Formation, ownership, liability and tax questions require appropriate professional review. LLC ownership does not automatically remove personal loan obligations.
A rental model commonly based on longer residential leases. Actual agreements, local requirements and lender treatment matter more than the label.
Loan amount divided by the applicable property value. Lenders determine the valuation basis and permitted leverage.
A rental model commonly involving extended furnished stays. Stay length alone does not determine lender eligibility or legal treatment.
A research projection based on assumptions and available data. It is not guaranteed revenue or automatically lender-accepted income.
Income less the operating expenses included in the model, before debt service. Specify treatment of reserves and capital spending when comparing properties.
The share of available rental time that is occupied. Check the denominator and treatment of owner use or unavailable periods.
An LLC governing document that can address ownership, management and authority. Have your attorney review it; the lender may require specific documentation.
Principal, interest, taxes, insurance and association dues. Confirm which components apply to the property and lender calculation.
A tax concept concerning when property is ready and available for its intended use. Your CPA should determine the correct date and supporting evidence.
Charges expressed as a percentage of the loan amount. One point equals 1%. Clarify whether a charge is a discount point or another fee.
A calculation or potential financing result based on available inputs. It is not an application, approval, rate lock or commitment.
Loan terms addressing early repayment and any applicable charge. Review the triggers, duration, exceptions and calculation in the documents.
A platform decision-support summary. It is not a recommendation to buy, proof of profitability or a lender qualification score.
The income a lender accepts for its underwriting calculation. It may differ from projected gross revenue or operating cash flow.
A separate process governing pricing for a stated period under applicable terms. Saving a preliminary app option does not lock a rate.
A refinance focused on replacing existing debt under the applicable program classification. Costs, repayment timeline and permitted proceeds still require review.
An appraisal-related record of rental information or comparable rents. The lender determines whether it is required and how it is used.
Funds held for required or planned future needs. Distinguish lender-required reserves from your broader operating cash plan.
Estimated property equity remaining after the proposed transaction. It depends on verified value and debt and is separate from available cash.
A platform workflow for involving another person in a property review. It does not create borrower status, guarantee obligations or legal signing authority.
A rental model commonly involving short stays. Local definitions, property restrictions and lender requirements vary.
A lender requirement involving how long a relevant condition has existed, such as ownership or a loan. The specific rule varies by program.
Testing a result under changed assumptions, such as lower income or higher expenses. It helps reveal dependencies rather than predict an outcome.
The most recent 12-month period used for an operating-history review. Confirm the dates, completeness and reconciliation of records.
The lender’s evaluation of the borrower, property, documentation and program requirements. A preliminary match is not underwriting approval.
A period without occupied or collected rental income, depending on the model. Distinguish vacancy from nonpayment and unavailable rental time.
On an eligible STR Advisory zero-point structure, no lender discount points and no STR Advisory origination fee. Other fees and closing costs remain.
How DSCR financing works · Compare loan structures · Zero-point financing
First rental purchase · Multi-member LLC financing · Human review and next steps
Preliminary outputs are not applications, approvals, rate locks or commitments. STR Advisory arranges eligible financing through third-party lenders and does not fund loans or make credit decisions. Financing is subject to verification, documentation, underwriting, eligibility, applicable licensing and state requirements.