Startup idea: Down payment for Airbnb hosts?

Hi guys! My fiancee and I recently bought our first house, and I’ve been running Airbnb on one of our extra bedrooms. My first month brought in enough Airbnb profits to cover our mortgage, which prompted this startup idea.

I’d like to create a down payment assistance program to help Airbnb hosts buy a primary residence home, and Airbnb out extra bedrooms to pay back the down payment.

Many of my peers have student debt that makes saving for a down payment difficult, and until you own your home landlords make it difficult to access Airbnb income. This down payment program would start in urban areas with high home costs but also high Airbnb rates.

I’d love to get your feedback - what do you think? Would any of you use it? How many Airbnb hosts are currently renters and want down payment help? Thank you for your feedback :slight_smile:

Airbnb gives a boost in search to new hosts. Also you started in summer which might be high season for your location. More competition usually means lower prices as well. How long have you been hosting? If it’s only a month or two I’d wait.

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It is an interesting concept, but, as an investor I would be extremely cautious about investing with someone who has not been a host before. Hospitality is not a career for a lot of people. People imagine that they would enjoy having strangers arrive and depart from their house daily, but don’t think about how much energy is takes to be welcoming day after day, and can’t imagine how intimate they become with their washing machine. If I were considering [and I am not] having a partnership with potential AirBNB hosts, I would require that they have significant experience in the hotel or BnB space.


When I read the OP that was the exact thought I had. Hosting isn’t for everyone and you only have to read this forum to discover why. Also, many people have inflated ideas about how much money they will actually make when all their expenses and all their time is taken into account.

If borrowing money to afford down payments to rent to Airbnb guests was viable then existing financial institutions would support it. But it just isn’t a good business plan.


I don’t see any bank giving a mortgage on a buy to let over airbnb, it’s unreliable income which they don’t count as jncome unless you have a proven track record of years. Maybe if you had a decent deposit and rented it long term.

But if you are lending to these people then I guess it is a different story.

How are you looking to fund this? You would need extremely deep pockets, credit checking and a personal guarantee in case of defaults.

In the UK you would also need to be approved by the financial authorities if you are extending credit.

What would you do if people defaulted because they couldn’t afford the repayment of the deposit alongside a mortgage, if you didn’t have a guarantor in place.

I know of a private equity firm which does this. You need to be a superhost with 50+ reviews to qualify.

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And in most states it would be illegal. Home Buyer MUST disclose the source of all funds used for purchase and a lender will NOT approve a loan where the down payment is borrowed.

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In most states it would be illegal since a first time home buyer (in this case) would probably buy as a primary residence. I though perhaps Veterans Administration loan for first time home buyer but their rules are even stricter. What about if you put up some of the equity from your first home? Might be the way to get this oiff the ground. You only need to wait until you have some equity and than borrow a hundred or so! I think we have a plan!

I agree. I would not buy a property with sole interest to make income on it. As investment yes, but not with the idea to secure income.

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I think Airbnb is too vulnerable to legislation seeking to limit and even outright ban short term rentals. These things can change from year to year as residents and hotel lobbies become increasingly hostile to this practice.

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Do you know which private equity firm this is? I would love to look into it.

Financing Partner
​Bebnb offers oustanding hosts a ZERO risk oppurtunity for growth with a 100% investment of the equity needed to startup new vacation rental properties.

Hosts Requierments:
​Airbnb Superhost for at least 6 months / outstanding reviews on other channels
Minimum 2 performing properties currently operating
Minimum 40 combined reviews

Bebnb is a NYC based private equity firm solely focused on privately managed vacation rental properties and services in the field.
The company was founded in 2013 with the purpose of becoming a global leading owner-operator of vacation rental properties by partnering up with leading pro’s in different territories while providing our expansive knowledge, experience and financial strength.

We have partnered with private investors who shares our deep believe and understanding of the tremendous potential for this market and the individuals who are running these operations.

DISCLAIMER - this is just copied from their website, I am not affiliated with this company and can’t vouch for the accuracy of the above.

Private Equity Firm could provide funds for an Airbnb purchase legally BUT in order to fund the loan at 100% of start-up Capitol needed, the risk to them would be high so they would require a very high return on that investment and I think the reality would be that THEY “own” the property and would be using you to manage THEIR investment so this is more along the lines of a hard money loan. I have not researched this group but am a Realtor as well as a Airbnb Superhost.


I don’t get it. Who owns it? You or them?

People will not appreciate something if handed to them.

If I were to guess, the properties would belong to them, through an SPV. “Partners” would be offered a nominal equity stake, of course, on top of management fees.

Hi, thanks for your input. Can you please provide the information to the equity firm you are speaking about?


It’s all in the post above!!

Just curious if your rates would be less than a bank loan.