Short-Term Rental Financing in Beaver Creek, CO

Short-Term Rental investing in Beaver Creek

Short-term rental financing in Beaver Creek is a different underwriting product than a long-term DSCR loan even though it carries the same name. The lender is crediting nightly revenue instead of a signed lease, which means the documentation, the reserve requirement, and the permit diligence all change.

At the Beaver Creek median of $3,500,000, a short-term rental prices near $3,500,000. Minimum down is 25% ($875,000), leaving a loan of $2,625,000. Estimated all-in PITIA runs about $21,204 per month.

Returns and structure

Return metrics at the Beaver Creek median for this product: an estimated cap rate of 1.38%, and monthly cash flow of $13,860 negative at 25% down. Negative cash flow at the minimum down payment is common in appreciation-led markets; investors close the gap with a larger down payment, a purchase below median, an added unit, or a rate buydown. Note that the $2,625,000 loan amount exceeds the $1,249,125 conforming limit for Eagle County, so agency pricing is off the table and this is a jumbo DSCR file.