Airbnb to Traditional Rental Property in OHIO Now

Your Strategic Pivot: How to Refinance an Airbnb into a Traditional Rental Property in Mansfield, Ohio

MANSFIELD, OHIO – AUGUST 10, 2025: You’ve mastered the art of short-term rentals, but now it’s time for a strategic pivot. Whether it’s new regulations, the desire for a more stable income stream, or simply a shift in your investment strategy, converting your high-performing Airbnb into a long-term rental property is a smart move. The challenge? Traditional banks often won’t lend on a property without a signed lease and a tenant in place.

This is a problem of process, not potential. The solution lies in a specialized financing tool designed for savvy real estate investors: the DSCR loan. This guide will walk you through how to use a DSCR loan to smoothly convert your Airbnb, unlock equity, and secure a new, reliable cash-flow asset, all while highlighting the prime investment opportunities in Mansfield, Ohio.

Refinance an Airbnb into a Traditional Rental Property:

The Investor’s Advantage: DSCR Loans Explained

A Debt Service Coverage Ratio (DSCR) loan is a modern, asset-based financing tool that bypasses the limitations of traditional lending. Instead of focusing on your personal income (W-2s, tax returns), it evaluates the property’s ability to generate income. For an investor, this means you can secure financing and a cash-out refinance before you even find a permanent tenant. The loan is qualified by the asset itself, not your personal financial history. This is a game-changer for self-employed investors or those with complex income streams.

So, how does a lender qualify a property that is transitioning from an Airbnb to a long-term rental? The lender orders a third-party market rent analysis. This professional appraisal determines a realistic, long-term rental value for your property based on comparable listings in the area, allowing you to get the financing you need.

The DSCR is calculated using this simple formula:

DSCR=fracGrossR˜entalI˜ncomeTotalD˜ebtS˜ervice(˜​PITI)

A DSCR of 1.25 or higher is generally preferred, as it demonstrates that the property’s income comfortably exceeds its mortgage payments, providing a safety buffer for both you and the lender.

The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

Start Quiz

Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

Page 2 of 5

How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

Page 5 of 5

Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Current Requirements and Rates (as of August 2025)

Here’s what you need to know about DSCR loans for converting your property:

• Interest Rates: As of today, DSCR loan rates typically fall within the range of 7.5% to 9.0%. These rates are slightly higher than conventional loans because they are non-qualified mortgages, but the speed and flexibility they offer can be a significant advantage. The final rate depends on factors like your credit score, the property’s DSCR, and the loan-to-value (LTV) ratio.
• Loan-to-Value (LTV): Most DSCR cash-out refinance programs allow a maximum LTV of up to 80%. This means you can pull out a significant portion of your built-up equity to fund your next investment, pay down debt, or cover other business expenses.
• Credit Score: While your personal income isn’t a factor, your credit history is. A credit score of 680 or higher is generally required to secure favorable terms, with the most competitive rates reserved for scores of 720+.
• No Personal Income Check: This is the key differentiator. You can refinance and access capital without providing a W-2, personal tax returns, or employment verification.
• Entity Requirements: These loans are often made to a business entity like an LLC, which is a recommended best practice for real estate investors for liability protection and asset management.

Quiz on Ohio Rental Property Laws

This quiz will test your knowledge of the essential laws and regulations for owning and managing an Ohio rental property. Understanding these rules is crucial for protecting your investment and ensuring a smooth tenancy.

Start Quiz

Page 1 of 5

What is the maximum amount of a security deposit a landlord can legally charge for an Ohio rental property? A) The maximum security deposit is two months' rent, which is the legal limit for an Ohio rental property. B) There is no legal limit on the security deposit amount. C) The maximum security deposit is one month's rent. D) The amount of the security deposit is based on the tenant's credit score, with a higher score leading to a lower deposit.

Page 2 of 5

How long does a landlord have to return a security deposit after a tenant moves out of an Ohio rental property? A) A landlord must return the security deposit within 30 days of the tenant vacating the Ohio rental property, or provide a written, itemized list of deductions. B) A landlord has 60 days to return the deposit. C) A landlord has 15 days to return the deposit. D) A landlord can hold the deposit for as long as they need to assess damages.

Page 3 of 5

What is a key requirement for a landlord's entry into an Ohio rental property? A) Landlords can enter at any time without notice. B) Landlords must provide at least 24 hours' notice before entering, except in an emergency. This is a key legal requirement for an Ohio rental property. C) Landlords must provide at least 48 hours' notice for entry. D) Landlords can only enter the property with the tenant's explicit, written permission for each visit.

Page 4 of 5

What is the legal process for evicting a tenant from an Ohio rental property for non-payment of rent? A) The landlord can change the locks immediately after rent is late. B) The landlord must provide the tenant with a three-day notice to pay rent or vacate the premises before filing for eviction, which is the official legal procedure for an Ohio rental property. C) The landlord must give 30 days' notice before filing for eviction. D) The landlord can shut off the utilities to force the tenant to move out.

Page 5 of 5

What is a landlord's duty to maintain an Ohio rental property? A) The landlord's duty is limited to ensuring the property is structurally sound. B) A landlord is required to maintain the property to be "habitable" and in compliance with all housing codes, a key legal obligation for an Ohio rental property. C) The landlord is not responsible for any repairs, which are the tenant's responsibility. D) The landlord's only duty is to ensure the tenant has access to water and electricity.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Mansfield, Ohio: A Prime Market for Your Portfolio Pivot

Mansfield, Ohio, presents a compelling backdrop for a strategic conversion from a short-term to a long-term rental. Located in Richland County, the city’s diversified economy and revitalized downtown make it an ideal market for long-term rentals. Key economic drivers include:

• Manufacturing & Technology: Mansfield has a rich manufacturing history that continues to evolve with key companies and a skilled workforce. This provides a steady base of renters.
• Healthcare: The presence of major healthcare systems like OhioHealth makes Mansfield a regional hub, attracting medical professionals and support staff who are excellent long-term tenants.
• Tourism: With landmarks like the Ohio State Reformatory (made famous by The Shawshank Redemption), Mansfield draws a steady stream of visitors, but this unique draw also supports local businesses and long-term employment, stabilizing the rental market.

Imagine you own a successful Airbnb in the desirable Woodland neighborhood (zip code 44903). You can use a DSCR loan to refinance, pull out equity, and then secure a long-term lease with a family or a healthcare professional. Alternatively, if your property is in a growing area like Ontario (zip code 44906) or Lexington (zip code 44904), you can leverage the same strategy to convert it into a stable, cash-flowing asset for families, providing a reliable income stream without the constant turnover.

For investors operating in this market, these high-quality external resources are essential:

• Ohio Department of Commerce, Division of Real Estate & Professional Licensing: Stay updated on state-level regulations and licensing requirements. https://com.ohio.gov/wps/portal/gov/com/divisions-and-programs/real-estate-and-professional-licensing
• Richland County Auditor’s Office: Research property values, taxes, and public records in Mansfield and surrounding areas. https://www.richlandcountyoh.gov/departments/auditor
• Mid-Ohio Real Estate Investors Association: Connect with local investors, access market insights, and stay on top of area trends. https://www.oreia.com/Page.aspx?ID=Find-a-Local-Group

GHC Funding: Your Go-To Partner for Strategic Refinancing

At GHC Funding, we specialize in understanding the unique needs of real estate investors. Our expertise in specialized financing, particularly DSCR loans, makes us uniquely positioned to support your portfolio’s growth. We don’t just see a property; we see the potential behind the asset.

Why choose GHC Funding for your conversion?

• We Understand the Strategy: We know exactly what you’re trying to accomplish and have a streamlined process designed for this specific scenario.
• Flexible Underwriting: We focus on the property’s potential, not your personal tax returns.
• Holistic Financial Solutions: Our expertise goes beyond DSCR loans. We offer a full suite of financing options for investors, including Bridge Loans, SBA 7a and 504 Loans, and Alternative Real Estate Financing. This ensures we can support your portfolio at every stage of its growth.

Your Questions, Answered 🙋‍♂️

Take the Next Step

Ready to make a strategic pivot from short-term to long-term? Don’t let traditional financing barriers hold you back. Your equity is a powerful tool, and with a DSCR loan, you can unlock it and continue to build a thriving, diversified portfolio.

Visit www.ghcfunding.com or call us today at 833-572-4327 to discuss how a DSCR loan can help you achieve your investment goals in Mansfield and beyond.

Ready to make a strategic pivot from short-term to long-term?

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

At GHC Funding, we are commercial finance specialists who guide real estate investors and business owners through the world of alternative lending. Our primary focus is on securing the right capital for your specific goals, whether that's a cash-flow-based DSCR loan for your rental portfolio, an SBA loan to grow your company, or a bridge loan to close a deal quickly and efficiently.

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN