12 min
How To Finance Short-term Rentals (Airbnb and VRBOs) Happy HomeOwner Podcast
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- Investing
DSCR stands for Debt Service Coverage Ratio. Think of this as an investor loan for both short (airbnb) and long term rentals. A little background on what a DSCR loan is:The formula for the debt-service coverage ratio requires net operating income and the total debt servicing for the entity. Net operating income is a company's revenue minus certain operating expenses (COE), not including taxes and interest payments. It is often considered the equivalent of earnings before interest a...
DSCR stands for Debt Service Coverage Ratio. Think of this as an investor loan for both short (airbnb) and long term rentals. A little background on what a DSCR loan is:The formula for the debt-service coverage ratio requires net operating income and the total debt servicing for the entity. Net operating income is a company's revenue minus certain operating expenses (COE), not including taxes and interest payments. It is often considered the equivalent of earnings before interest a...
12 min