Case Study: DSCR Airbnb Loan in Saint George Island, FL

About the Deal

A borrower purchased a 3-bedroom, 2-bathroom condominium on Saint George Island, Florida, a barrier island off the Florida Panhandle and an established beach vacation market.

The property generated income as a short-term rental. Long-term market rent came in at $2,648 per month, which would not support debt service on a $396,000 loan. Ridge Street Capital underwrote the deal using AirDNA projected short-term rental income instead of long-term market rent, matching the income basis to how the asset actually operates.

AirDNA projected $65,300 in annual gross STR revenue, based on 61% occupancy and a $293 average daily rate. That income supported the DSCR loan, and Ridge Street Capital financed the purchase through its Florida DSCR loan program.

What Made It Special

STR income turned a non-qualifying deal into a funded purchase. The long-term rent estimate of $2,648 per month produced a DSCR below 1.0 on a $396,000 loan. Under standard long-term rent underwriting, the file would not qualify.

Ridge Street Capital’s DSCR for Airbnb program used AirDNA projected revenue as the income basis. At $65,300 in annual gross STR revenue, the property qualified. The underwriting matched the asset type: a vacation rental in a beach market where nightly rates, occupancy, and seasonality drive income.

The acquisition had built-in equity. The borrower purchased the property for $540,000 against a Zillow Zestimate of $680,000, a $140,000 gap below the automated value estimate. Ridge Street Capital lent at 72.66% LTV against the purchase price, placing the loan well below the estimated property value at closing.

That gave the investor equity at acquisition before the property booked a single short-term rental night.

The deal matched a strong Airbnb market profile. Beach condos with favorable HOA rules for short-term rentals can be difficult to secure in established Florida vacation markets. Saint George Island fit the kind of market profile investors look for when reviewing the best places to buy an Airbnb: destination demand, limited comparable supply, and revenue driven by short-term stays rather than long-term rent.

The borrower also had the core inputs needed for a full Airbnb investment analysis: projected annual revenue, occupancy, ADR, purchase price, loan terms, and operating structure.

The loan provided long-term rate certainty. Ridge Street Capital structured the purchase as a 30-year fixed-rate STR DSCR loan and closed in 30 days from application. For a seasonal vacation rental, fixed-rate financing gave the borrower a predictable debt payment while the property operated on variable short-term rental income.

The Result

Ridge Street Capital financed a Saint George Island beach condo using short-term rental income projections instead of long-term market rent.

• Loan amount: $396,000
• Loan type: 30-year fixed-rate STR DSCR loan
• Rate: 7.025%
• LTV: 72.66%
• STR income basis: AirDNA projection
• ‍Closed: 30 days

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 35 states. Every deal is reviewed by a team focused exclusively on investment properties, so the underwriting questions are tied to what makes the project work.

‍