Short-term rentals have exploded in popularity, offering investors new ways to generate high cash flow while capitalizing on tourism and business travel demand. But growing a short-term rental portfolio — especially in competitive markets like Nashville — requires the right financing strategy.
In this case study, we spotlight an investor who transformed an Airbnb property into a high-performing, cash-flowing asset — and used a cash-out refinance with BetterLife REF to unlock even more growth potential.
The Property
Located in the heart of Nashville, this Airbnb is perfectly positioned for:
- Bachelorette parties
- Family getaways
- Corporate offsites for enterprise SaaS companies
With its modern design, spacious layout, and unbeatable location, the property quickly became a top choice for short-term renters visiting Music City.
The Opportunity
After successfully stabilizing the Airbnb with strong booking volume and high guest reviews, the owner saw an opportunity to leverage the property’s value for future investments.
Key financial metrics:
- Property Value: $1,400,000
- Loan Amount: 75% LTV Cashout
- Estimated Annual Income: $160,000
- Monthly Cashflow After Debt Service: $5,100
- Debt-Service-Coverage Ratio (DSCR): 1.6
With a cash-out refinance, the investor could:
- Unlock significant equity without selling
- Improve loan terms
- Create liquidity to reinvest into more properties
BetterLife REF’s flexible lending options made it easy to tailor a cash-out solution built specifically for short-term rental income properties.
The Financing Solution
BetterLife REF provided a 75% loan-to-value (LTV) cash-out refinance, delivering a strong combination of:
- Maximized cash-out: Unlocking equity while maintaining healthy cash flow
- Favorable terms: Optimized for short-term rental income models
- Streamlined underwriting: Focused on the property’s proven income, not just traditional long-term rental comps
This approach was critical — many traditional lenders struggle to underwrite Airbnb income accurately. BetterLife REF’s investment property expertise ensured a smooth process from application to closing.
The Results
Following the refinance, the investor achieved several major wins:
- $5,100 monthly cash flow even after debt service
- $160,000 estimated annual income from Airbnb bookings
- Liquidity created for future investments
- Maintained a strong 1.6 DSCR, ensuring long-term portfolio stability
By tapping into the equity of a thriving Airbnb, the owner was able to both enjoy ongoing high cash flow and position themselves for rapid portfolio expansion.
Why It Worked
Several key factors made this refinance a success:
- Prime location: Nashville’s popularity ensures strong demand for short-term rentals.
- Diverse guest appeal: Bachelorette parties, families, and business travelers create year-round occupancy opportunities.
- Professional property management: High-quality guest experiences drive positive reviews, higher pricing, and repeat bookings.
- Right lender partnership: BetterLife REF’s understanding of the short-term rental model made all the difference in structuring the right loan.
Lessons for Short-Term Rental Investors
For investors considering similar strategies, this case study highlights a few important lessons:
- Document your Airbnb income carefully: Showing strong historical income is key to qualifying for favorable refinance terms.
- Understand local regulations: Short-term rental laws vary widely by city — Nashville remains a favorable market, but due diligence is crucial.
- Work with a lender who gets it: Not all lenders are comfortable with Airbnb models. BetterLife REF specializes in investment property financing that fits non-traditional income streams.
Conclusion: Power Your Portfolio Growth with BetterLife REF
This Nashville success story shows how a well-managed Airbnb property can become much more than just a great investment — it can be a launchpad for future wealth-building.
Whether you’re looking to refinance your first short-term rental or scale a larger portfolio, BetterLife REF can help you unlock the full value of your properties with tailored lending solutions.