Refinancing a Portfolio of Short-Term Rentals Under One DSCR Facility
Five separate DSCR loans on five separate STRs means five renewal dates, five sets of rate exposure, and five servicers to track. Rolling them into a single portfolio DSCR facility can genuinely simplify that — but a refinance is a cost-and-rate decision before it's a convenience decision, and it doesn't automatically win just because it's tidier.
NightYield Editorial
STR-DSCR research & underwriting desk
Published 2026-07-14
What changes when you refinance into one facility
Instead of tracking separate maturity dates, rate resets, and servicing relationships across each property, a portfolio refinance consolidates everything into a single facility with one rate structure and one set of covenants. Reporting simplifies too — one set of financials to assemble instead of five, which matters if you're also trying to qualify for additional acquisition financing elsewhere.
The blended DSCR calculation is the other real benefit: if one property in your portfolio is a strong performer and another is seasonal or underperforming, aggregate underwriting can smooth that out in a way that five standalone DSCR tests never would.
Where the refinance math actually needs to work
Prepayment penalties on the existing loans are the line item most commonly missed in this analysis. If any of the properties are still inside a prepayment penalty window — common on DSCR loans in the first several years — refinancing early can trigger a real cost that has to be weighed against the consolidation benefit.
- Compare your current blended rate against today's portfolio DSCR facility rate, not just the sticker rate on the new offer.
- Check every existing loan for an active prepayment penalty before including it in the refinance.
- New closing costs apply across the whole portfolio at once, not per property — get the total, not a per-unit estimate.
- Cross-collateralization becomes a factor going forward, even if it wasn't with separate standalone loans.
Who this actually makes sense for
This tends to make the most sense for investors who built a portfolio during a period of higher rates or scattered lender relationships, now have a longer operating track record to show, and are managing enough separate loans that the administrative overhead is a real drag — not simply investors who'd prefer one bill over five for its own sake.
Key takeaways
- Consolidating STR loans into one DSCR facility simplifies servicing and can smooth qualification via blended DSCR math.
- Compare your current blended rate against the new facility's rate — consolidation for its own sake can raise total debt service.
- Check every existing loan for prepayment penalties before refinancing early.
- This move tends to make sense with an established multi-property track record, not as a first-portfolio move.