The Need for Speed in Austin
The research identifies Easy Street Capital as a distinct outlier in the Texas lending market. Based in Austin—the heart of the state’s short-term rental boom—this lender has built a program that focuses on speed and velocity.
While many banks view vacation rentals as risky, the data suggests Easy Street Capital views them as a primary asset class. They have reported a 0% default rate on their short-term rental loans. This statistic tells a clear story: their method of using data instead of personal income is working.
The “AirBnBRRRR” Advantage
The most significant finding in the research is a strategy Easy Street calls the “AirBnBRRRR.”
To understand why this matters, we must look at the standard timeline for real estate investors.
- The Old Way: An investor buys a fixer-upper and renovates it. Most lenders require a “seasoning period” of 6 to 12 months. This means the investor’s money is stuck in the house for a full year before they can refinance to get their cash back.
- The Easy Street Way: The research highlights that Easy Street removes this barrier. They allow for cash-out refinances after just one booking.
What the Data Means for You: This structure allows an investor to buy a distressed property in January, fix it up by March, list it in April, and get their money back by May. This cycle creates “velocity of capital,” allowing the same dollars to be used multiple times in one year.
Breaking Down the Loan Terms
The research outlines the specific “architectural” details of their loan products. These terms are designed for active investors who want to scale.
- Loan-to-Value (LTV): They offer up to 80% LTV when buying a property or refinancing to lower a rate. For “cash-out” deals (where you take money out of the house), they cap the loan at 75%.
- The “Second Home” Option: The analysis reveals a unique “loophole” product. They offer a Second Home loan that allows for 90% LTV (just 10% down). Unlike standard bank loans, this product does not require tax returns or debt-to-income (DTI) calculations. It even allows the use of property management companies, which is rare for second-home loans.
- Geography: While many national lenders avoid rural areas, the research shows Easy Street actively lends in vacation markets. This is critical for Texas investors looking at Hill Country cabins, lake houses (like Lake Travis), or hunting lodges that fall outside of big cities.
The AirDNA Difference
How does Easy Street approve these loans without tax returns? The answer lies in the data source.
Traditional lenders often use a form called the “1007 Schedule,” which guesses what a house would rent for if a tenant signed a one-year lease. In Texas, where taxes are high, this number is often too low to qualify for a loan.
Easy Street Capital uses AirDNA data (and maybe someday StaySTRA.com). They look at the projected nightly revenue of the property as a short-term rental. They essentially “white-label” this data, accepting the higher income potential of a vacation rental without the arbitrary reductions (haircuts) that other banks apply.
Summary of Strategic Fit
Based on the profile, Easy Street Capital is best suited for the Active Investor. If your strategy involves buying distressed homes, fixing them up, and turning them into Airbnbs quickly, their lack of “seasoning” requirements offers a mathematical advantage that is hard to find elsewhere.
Finding the right financial partner is about matching their strengths to your specific plan. If this lender’s program does not fit your current strategy—whether you need more speed, higher leverage, or different terms—you have other options. We have analyzed the entire market for you. Review our full guide to the Top 10 Texas DSCR Lenders to compare every option side-by-side.