Short-Term Rental Financing in Kapaa, HI

The Kapaa ratio math on this product

Gross nightly revenue in Kapaa models to about $5,800/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $4,176 of creditable income. Against a PITIA of $5,665, that is an estimated DSCR ratio of 0.74x. That is below the 1.0 threshold, which is normal at this basis. Financing here works one of three ways — more money down, a no-ratio DSCR product, or qualifying on documented short-term rental revenue.

Underwriting notes specific to STR files: plan on 25% down as the floor, six months of PITIA in reserves, and either twelve months of Airbnb/VRBO earnings statements on the subject property or a third-party market revenue study for a property with no operating history. Short-term rentals are active in this market; licensing and zoning are set locally and we verify the specific address before quoting. Verify the permit status of the exact address before you go hard on earnest money — an unpermitted STR is an unfinanceable STR on this product.