Short-Term Rental Financing in Greenwich, CT

Short-Term Rental investing in Greenwich

Short-term rental financing in Greenwich 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 Greenwich median of $1,750,000, a short-term rental prices near $1,750,000. Minimum down is 25% ($437,500), leaving a loan of $1,312,500. Estimated all-in PITIA runs about $12,510 per month.

Returns and structure

Return metrics at the Greenwich median for this product: an estimated cap rate of 2.66%, and monthly cash flow of $5,454 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 $1,312,500 loan amount exceeds the $806,500 conforming limit for Fairfield County, so agency pricing is off the table and this is a jumbo DSCR file.