From Pacific Beach duplexes to North County family homes, San Diego investors routinely borrow more than $1 million on a single rental. The first question on these files is usually not the rate but whether the rent is long-term, mid-term or a licensed vacation rental.
In short: LendingStreet finances $1M+ San Diego rentals with DSCR loans that qualify on the property's rent, not your income. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and short-term rental DSCR starts at 6.49%. Purchases go up to 80% LTV, but large balances often get lower leverage and higher reserve requirements. In the City of San Diego, whole-home short-term rentals need a license and the number of licenses is limited, so most large investor loans here qualify on long-term rent unless a license is already in hand.
A DSCR loan sizes the mortgage to the rent. In San Diego, the same beach-area property can be underwritten three different ways, and each gives a different answer.
Long-term leases are the simplest: the appraiser's market rent or your current lease. Short-term rental income can qualify on projected revenue under our STR program, but only if the property can legally operate as a vacation rental. Mid-term furnished rentals for traveling nurses, military families in transition and relocating workers sit in between, and programs treat that income differently.
Decide which story the property supports before you set the price you are willing to pay. The rent type, not the listing's best-case number, is what the loan will be built on.
The City of San Diego requires a license for short-term rentals. Whole-home rentals where the host does not live on site fall into a licensed tier with a citywide cap, and Mission Beach has its own separate allocation. Licenses have been issued by lottery and come with renewal and operating rules.
For financing, that means you should not assume a coastal home can be run as an Airbnb just because neighbors do. A license generally stays with the host and property under the city's rules and may not transfer with a sale. Confirm the current rules with the city before you count on STR revenue.
Other cities in the county, including Oceanside, Carlsbad, Encinitas and Coronado, set their own rules, and some limit vacation rentals to certain zones or to longer minimum stays. Each one needs its own check.
This is a general picture of where investors buy higher-priced rentals and what usually comes up. It is not a price guide; use current comps for values and rents.
| Area | Typical $1M+ rental | Common underwriting question |
|---|---|---|
| Pacific Beach, Mission Beach, Ocean Beach | Duplexes, small multi-unit and beach cottages | STR license status, flood and coastal exposure |
| La Jolla and Bird Rock | Single-family homes and condos | High price against long-term rent, HOA dues on condos |
| Coronado and Bay Park | Single-family and 2-4 units | Military tenant demand, city STR rules |
| North Park, South Park, Kensington, Mission Hills | Craftsman homes, duplexes and ADU properties | ADU permits, older housing stock |
| Carlsbad, Encinitas, Del Mar, Solana Beach | Larger single-family and coastal homes | Each city's STR zones, coastal permits |
| Scripps Ranch, Rancho Bernardo, eastern suburbs | Newer single-family | Wildfire exposure and insurance cost |
San Diego's renter base includes a large military population tied to Naval Base San Diego, Naval Air Station North Island, Marine Corps Air Station Miramar and Camp Pendleton. It also includes biotech and research workers around Torrey Pines and Sorrento Valley, university staff and families who rent near good schools.
That mix supports long-term and mid-term demand in many neighborhoods. For underwriting, the appraiser's rent estimate is what counts, so the best evidence is recent signed leases on similar homes nearby.
Military households often receive a housing allowance and move on a fixed schedule, which can mean dependable demand near bases but regular turnover. Biotech and university renters tend to cluster near the coast and the I-5 corridor. Knowing which tenant pool fits your property helps you set a realistic rent, and a realistic rent is what keeps the loan amount where you expect it.
This example is illustrative and not a quote. An investor buys a duplex near the beach for $1,850,000. Both units are leased long-term for a combined $10,400 a month. Taxes are budgeted at $1,925 a month and insurance at $300.
At 65% LTV the loan is $1,202,500 and the down payment is $647,500. At a sample rate of 7.125% on a 30-year fixed, principal and interest is about $8,101. The total payment is about $10,326, and DSCR is about 1.01x, just above the 1.0x standard minimum.
At 70% LTV the loan would be $1,295,000, principal and interest about $8,725 and the total payment about $10,950. DSCR falls to about 0.95x. This is why coastal San Diego deals often close at lower leverage than the program maximum: the rent sets the ceiling.
| Item | 65% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,202,500 | $1,295,000 |
| Down payment | $647,500 | $555,000 |
| Principal and interest | $8,101 | $8,725 |
| Taxes and insurance | $2,225 | $2,225 |
| Total monthly payment | $10,326 | $10,950 |
| DSCR at $10,400 rent | About 1.01x | About 0.95x |
Property taxes in California reset to the purchase price under Proposition 13, so use your price, not the seller's bill. Check the tax roll for Mello-Roos and other special assessments, which are common in newer master-planned communities across the county.
Insurance varies a lot by location. Inland and canyon-adjacent neighborhoods can carry wildfire risk, and carriers have pulled back in parts of California. Low-lying beach areas may need flood coverage depending on the flood map, and bluff-top homes can raise erosion questions. Get a quote during your contingency period.
Higher-priced condos in Downtown, Little Italy, La Jolla and along the coast are popular with investors who want a lock-and-leave rental. On a DSCR loan, the HOA dues count in the payment, and on luxury buildings with pools, concierge service and ocean frontage those dues can be large.
Lenders also review the building itself. Expect questions about the HOA's budget and reserves, pending litigation, the share of units that are rented, any single owner holding many units and any planned special assessments. A condo that fails a standard review may still be financeable through a non-warrantable condo program, often at lower leverage.
Many buildings also restrict short-term rentals or set minimum lease terms in their rules, regardless of what the city allows. Read the HOA documents before you count on nightly income.
Our DSCR programs keep the same basics at any size: qualify on rent, no W-2s or tax returns, a 620 minimum credit score, LLC borrowers allowed and 30-year fixed options. On larger balances, expect a few extra steps.
Maximum LTV is often lower, reserves are often higher, and some programs require a second appraisal or a more detailed review. Pricing on large loans is set case by case, so credit score, reserves and your experience owning rentals all help.
In San Diego County, $500K to $1M loans are common for condos and townhomes in Mission Valley, Downtown, Hillcrest and North Park, single-family homes in inland areas like Chula Vista, Santee, El Cajon and Escondido, and smaller condos in Oceanside.
Leverage on these balances is often closer to the program limits of 80% LTV on purchases and 75% on cash-out, with reserves that are often lighter than on $1M+ loans. Both vary by program, and HOA dues on a condo count in the payment used for the 1.0x standard minimum.
STR licensing still applies at any price. The City of San Diego limits whole-home vacation rental licenses outside Mission Beach, so most condos and inland homes in this range qualify on long-term rent. Confirm current rules before you count on nightly income.
Gather these before you apply, and the financing team can give you a real answer quickly.
LendingStreet is an investment property financing company focused on business-purpose loans for non-owner-occupied rentals. Send the address, price, rent type and target leverage.
We will run the ratio at a few loan amounts, flag anything about the license, insurance or permits that could change the answer, and come back with 2-3 options. If the property is strong but the ratio is slightly short, we can also look at sub-1.0 DSCR programs.
Yes, if the property can legally operate as a short-term rental. STR DSCR loans qualify on projected revenue, with rates from 6.49% for qualified borrowers. In the City of San Diego, whole-home STRs need a license and licenses are limited, so confirm with the city first.
Generally you should not assume it does. Under the city's rules, licenses are tied to the host and property and may not carry over with a sale. Confirm the current rules with the City of San Diego.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case.
Some programs consider it, others use long-term market rent only. Ask how your program treats furnished 30-day-plus income before you buy based on it.
It depends on the rent. Purchases go up to 80% LTV, but large balances often get less, and coastal properties often need more equity just to reach a 1.0x ratio. Use our DSCR calculator with your own numbers. Ask the financing team to run the ratio at two or three leverage levels so you know your down payment before you make an offer.
If the property is in a FEMA special flood hazard area, flood insurance is generally required. Check the current flood map and get a quote early.
Yes. Properties with two to four units are core DSCR property types and qualify on combined rent. Five or more units move to our multifamily programs, which are underwritten on net operating income.
Yes. Cash-out refinancing goes up to 75% LTV, often lower on large balances, and the rent must still cover the new payment at the program's minimum ratio.
No. LendingStreet finances non-owner-occupied investment property only, so a second home or a home you live in does not qualify.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Mission Valley, Downtown and North Park condos and for inland single-family homes in Chula Vista, Santee and Escondido.
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