Short-Term Rental Financing in Aspen, CO

Short-Term Rental investing in Aspen

Short-term rental financing in Aspen 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 Aspen median of $3,200,000, a short-term rental prices near $3,200,000. Minimum down is 25% ($800,000), leaving a loan of $2,400,000. Estimated all-in PITIA runs about $19,386 per month.

Returns and structure

Return metrics at the Aspen median for this product: an estimated cap rate of 3.64%, and monthly cash flow of $1,746 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 $2,400,000 loan amount exceeds the $1,209,750 conforming limit for Pitkin County, so agency pricing is off the table and this is a jumbo DSCR file.