Case study: DSCR for Airbnb Cash-Out in Santa Rosa Beach, FL

About the Deal

A borrower refinanced a four-bedroom, five-bathroom luxury vacation home on Western Lake Drive in Santa Rosa Beach, Florida, one of the Gulf Coast’s most active Airbnb markets.

The borrower purchased the property for $2,816,000 in February 2026 and owned it free and clear. By July, the home had five months of real short-term rental history, including 87 nights booked through actual guest reservations.

The goal was to access equity through a DSCR cash-out refinance and redeploy that capital into the next acquisition, without selling the property or taking it off the rental market.

A standard conventional cash-out refinance did not fit the file. There was no existing mortgage to pay off, and the borrower was not qualifying through W-2 income. Ridge Street Capital structured the loan as an Airbnb DSCR loan refinance, using the property’s short-term rental booking history rather than long-term market rent.

The appraisal came in at $2,950,000. Ridge Street Capital closed the loan at 47% LTV, providing a $1,385,700 refinance and returning approximately $1.34 million to the borrower for future investment.

What Made It Special

• The loan closed in 22 days: Most lenders need about 30 days to close a cash-out refinance like this, if they will underwrite it at all. Ridge Street Capital closed the loan in 22 days. The application came in on July 9, the appraisal was ordered on July 14, the appraisal effective date was July 20, and the loan closed on July 31.
• Real booking history supported the refinance: The property had five months of actual short-term rental performance behind it, including 87 nights booked. This was not a file built only on projected rent. Ridge Street Capital underwrote the property using real reservation history tied to how the asset actually operated.
• Free-and-clear equity became deployable capital: The borrower owned the property without an existing mortgage. The refinance converted that equity into capital for the next acquisition while keeping the vacation rental in the portfolio. If you own a property free and clear, the equity in it is not idle. It can become usable capital without triggering a sale.
• The property was held in an LLC: The borrower held title through a Delaware LLC. DSCR loans under an LLC are part of Ridge Street Capital’s standard process, with entity review handled alongside the rest of the file.

The Result

Ridge Street Capital completed a DSCR cash-out refinance on a luxury Santa Rosa Beach vacation rental, converting built-up equity into capital for the borrower’s next acquisition while keeping the property active.

• Loan amount: $1,385,700
• Loan type: 5/6 ARM DSCR loan for Airbnb
• Rate: 6.158%
• Appraised value: $2,950,000
• LTV: 46.97%
• Cash out at close: Approximately $1,335,575
• Timeline: Application July 9, closing July 31
• Funded: 22 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 36 states. Our focus is exclusively on investment properties, so every deal is reviewed by a team that understands what makes an investment work or fail.

‍