Master Real Estate Investment Loan DSCR Strategies Today
Why DSCR Matters for Investors
For real estate investors, the DSCR is more than just a number; it represents the financial health of an investment property. Lenders typically require a DSCR of at least 1.2 to 1.5, meaning the property generates 20% to 50% more income than the debt service costs. This buffer assures lenders that even if income fluctuates, the loan payments can still be met1. Understanding and optimizing your DSCR can open doors to more competitive loan rates and terms, ultimately enhancing your investment's return on investment (ROI).