How much do I need to put down on a short-term rental in Paia, HI?

25% is the working minimum on a DSCR loan for this product — about $312,500 at the $1,250,000 price point modeled here — plus closing costs of roughly 2%–4% and three to six months of PITIA in reserves ($24,562 to $49,123). Putting more down improves the ratio and moves you into a better pricing tier, which is often the cheapest way to buy down the rate.

What DSCR ratio does a short-term rental in Paia hit?

At the median basis modeled on this page, roughly 0.69x — $5,652 of creditable monthly income against $8,187 of PITIA. Most lenders want 1.0x or better for base pricing, several fund to 0.75x with a rate add-on, and no-ratio products exist for files that do not cash-flow at all. The ratio is property-specific, so the number on your address will differ.

Can I close a short-term rental in Paia in an LLC?

Yes. DSCR loans are business-purpose loans, so title in an LLC, LP or trust is standard and does not change pricing. You will personally guarantee the note and provide the operating agreement, EIN and certificate of good standing. Conventional investor financing does not allow entity title, which is one of the main reasons investors choose DSCR even when they could document income.

What documentation proves short-term rental income in Paia?

Twelve months of platform earnings statements from Airbnb or VRBO on the subject property is the cleanest path. For a property with no operating history, most shelves accept a third-party market revenue study (AirDNA or a licensed property manager's projection) supported by the appraiser's comparable rent schedule. Expect the lender to haircut whichever figure you supply by 25%–30%.

Short-Term Rental · Paia, HI

Short-Term Rental Financing in Paia, HI

Estimated 0.69x DSCR on a $1,250,000 short-term rental with $312,500 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price

$1,250,000

25% Down

$312,500

Loan Amount

$937,500

Est. Monthly PITIA

$8,187

Creditable STR Income

$5,652/mo

Est. DSCR Ratio

0.69x

Short-Term Rental investing in Paia

Short-term rental financing in Paia 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 Paia median of $1,250,000, a short-term rental prices near $1,250,000. Minimum down is 25% ($312,500), leaving a loan of $937,500. Estimated all-in PITIA runs about $8,187 per month.

The Paia ratio math on this product

Gross nightly revenue in Paia models to about $7,850/month across a full year. Lenders do not credit that dollar-for-dollar — a 28% haircut for vacancy, cleaning, platform fees and management leaves $5,652 of creditable income. Against a PITIA of $8,187, that is an estimated DSCR ratio of 0.69x. 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.

Returns and structure

Return metrics at the Paia median for this product: an estimated cap rate of 2.98%, and monthly cash flow of $2,535 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 $937,500 loan amount exceeds the $806,500 conforming limit for Maui County, so agency pricing is off the table and this is a jumbo DSCR file.

Paia property types compared

Property Type	Modeled Price	Min. Down	Est. Income	Est. DSCR
Single-Family Rental	$1,250,000	20% ($250,000)	$3,650/mo	0.43x
2–4 Unit Multi-Family	$1,975,000	25% ($493,750)	$6,789/mo	0.52x
Condo & Townhome	$900,000	20% ($180,000)	$2,884/mo	0.43x
Short-Term Rental (this page)	$1,250,000	25% ($312,500)	$5,652/mo	0.69x

All figures model a purchase at the Paia median of $1,250,000 with the property-type adjustments described above, at an illustrative 7.50% DSCR rate on a 30-year fixed. Short-term rental income is shown after the standard lender haircut.

Figures on this page are modeled estimates derived from the Paia median price and market rent, adjusted for short-term rental product characteristics. They are illustrative, not a loan offer or an appraisal. Actual pricing, rent, taxes, insurance, HOA dues and DSCR depend on the specific property and on conditions at the time of application.

Paia Short-Term Rental FAQ

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Single-Family Rental in Paia

0.43x est. DSCR

2–4 Unit Multi-Family in Paia

0.52x est. DSCR

Condo & Townhome in Paia

0.43x est. DSCR

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Price a short-term rental in Paia

Send us the address and we'll model the real DSCR ratio, PITIA and cash flow on that specific property — usually the same day. Licensed in Hawaii, and we close in an LLC or your personal name.

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