How to Buy Your First Airbnb with No Money Down

Are you looking to buy your first Airbnb? Do you know you could do it with no money down?

If an investor decides to use short-term rentals as an income stream, ideally, they won’t want to pay a bunch of money up front for the property.

But is it possible to buy your first Airbnb with no money down? What does it take to get 100% financing on a property to convert into an Airbnb?

Using the BRRRR Strategy to Invest in an Airbnb with No Money Down

One possible way to get a short-term rental with zero money down is to use the BRRRR strategy.

If you can buy a property undermarket, fix it up within budget, and refinance, then you can set up an Airbnb for no money down.

We’ve helped a lot of people use the BRRRR strategy to get into Airbnbs. They keep the purchase and rehab costs at 75% or below the ARV, then get into a long-term conventional loan or DSCR loan.

The BRRRR process for Airbnbs is mostly the same as for a traditional rental properties, with a few slightly different requirements.

Long-term Loan Requirements to Invest in Airbnb

You’ll find conventional lenders that will lend for an Airbnb. But they may require that you have:

Two years of experience with Airbnbs
Other real estate investment history
The income for the loan (from a W2 job or your own business) without any income from the property.

If you’d need a loan with fewer requirements for your first Airbnb, then a DSCR loan may be right for you. A DSCR loan’s only major requirement is that the income from rent covers the expenses of the property.

What If You Can’t Get an Airbnb for Zero Down?

If you land a good BRRRR opportunity – that is, if you find a property you can buy and fix up for under 75% of the ARV – you can get it with zero down.

Otherwise, you’ll be asked to put 20-30% down, depending on: