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Episode 171: Funding your Airbnb/STRs with Jake Clopton
Description
Jake Clopton of Clopton Capital explains how to finance short-term rental properties at the commercial scale - loans starting at $1 million, covering everything from single high-value homes to 6-10 unit apartment buildings rented entirely on Airbnb. He breaks down the underwriting approach: lenders treat STR income like business income, cap loan-to-value at 75% based on what the real estate would appraise for as traditional multifamily, and typically offer 4-4.5% rates with 20-25% down on five-year terms.
The conversation covers why Nashville, Florida, Texas and Arizona see the most STR financing activity post-COVID, how to use S-corp tax returns or personal income to qualify, and why putting properties in LLCs immediately disqualifies you from residential mortgage rates. Jake warns that scaling from single-family to a 10-unit building means proving consistent demand to fill every unit short-term, and advises working with regional banks over national chains.
Work with us. Interested in professional management or consulting?
Myka — Sharebnb: www.sharebnb.com
Steve — Argest Rentals: www.ArgestRentals.com
Sign up for PadSplit with Steve's link and get a free 1-on-1 PadSplit strategy call with Stevie Stacks: padsplit.com/hosts
Myka's other podcast, Entrepremarriage — building wealth without losing the marriage: youtube.com/@Entrepremarriage
All our links: linktr.ee/liveletthrive
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