Case Study: DSCR STR Loan in Naples, FL

ABOUT THE DEAL

A three-bedroom, two-bathroom single-family cottage in Naples Park, Florida, purchased at $620,000 after a series of price reductions from a $699,900 original list. The investor was acquiring the property to operate as a short-term vacation rental in one of Southwest Florida's most active STR submarkets, minutes from Vanderbilt Beach.

The challenge was layered. Long-term rental income would not cover debt service. Even an initial STR estimate fell below 1.0 once actual Florida taxes and insurance replaced the placeholder figures. The deal required the right product, the right income model, and a lender willing to work through the full cost picture. Ridge Street Capital financed this purchase through its Florida DSCR loan program.

WHAT MADE IT SPECIAL

• Two income scenarios failed before one qualified. Long-term rental income (Zillow: $3,901/month) against actual PITIA of $4,900 produces a DSCR of 0.80. Not close. An initial STR income estimate of $4,500/month appeared to clear 1.0, but only because the underwriting used underestimated taxes and insurance. Against real costs, that same income produces a DSCR of 0.92. Ridge Street Capital's Airbnb loan program is what makes this loan type available. Getting the income inputs right for this specific property is what made it fundable.
• Florida taxes and insurance cost more than standard estimates assume. The initial underwriting used combined tax and insurance estimates of $916/month. Actual property taxes came in at $1,029/month ($12,352/year from 2025 actuals). The Citizens Property Insurance DP-3 policy added $599/month ($7,193/year). Total actual PITIA: $4,200/month. That $712/month gap between estimated and real costs is the difference between a qualifying deal and one that does not close.
• STR income modeled at the conservative floor of the Naples Park submarket. Ridge Street Capital underwrote the 3-bedroom property at a $375/night ADR, which is the lower end of comparable listings in Naples Park, and 56% occupancy. The deal qualified on conservative, defensible inputs, not projections stretched to the top of the comp range.
• Buyer negotiated the purchase price down 11.4%. The property listed at $699,900 in November 2025. After two reductions and a negotiated close, the investor purchased at $620,000 in July 2026. That price discipline reduced the loan balance and monthly debt service, creating the margin the STR revenue needed to produce a qualifying DSCR. Without the price reduction, the same revenue inputs would not have cleared 1.0.

THE RESULT

The completed DSCR loan for Airbnb gave the investor a cash-flowing vacation rental in Naples, Florida financed on corrected 3-bedroom revenue projections and real Florida cost inputs. The deal failed every other underwriting scenario before this one.

• Loan Amount: $496,000 (30-Year Fixed Rate STR DSCR Loan)
• Rate: 6.917%
• LTV: 80%
• DSCR: ~1.07

MORE ABOUT RIDGE STREET CAPITAL

Ridge Street Capital provides Fix and Flip loans, DSCR rental loans, and ground-up construction financing to real estate investors across 36 states. Our focus is exclusively on investment properties, which means every deal we evaluate gets the attention of a team that has seen the full range of what makes an investment work or fail.

If you want a lender who will tell you clearly whether a deal makes sense and move fast when it does, fill out the form.