Short-Term Rental Financing in Palm Beach, FL

Short-Term Rental investing in Palm Beach

Short-term rental financing in Palm Beach 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 Palm Beach median of $4,500,000, a short-term rental prices near $4,500,000. Minimum down is 25% ($1,125,000), leaving a loan of $3,375,000. Estimated all-in PITIA runs about $32,991 per month.

Returns and structure

Return metrics at the Palm Beach median for this product: an estimated cap rate of 1.29%, and monthly cash flow of $24,207 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 $3,375,000 loan amount exceeds the $832,750 conforming limit for Palm Beach County, so agency pricing is off the table and this is a jumbo DSCR file.