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Calculators · 02

Will the rent qualify the loan?

DSCR lenders divide the rent by the payment. So do I. Get your ratio and a straight verdict.

Loan details

$
$

That's 25.0% down.

%
▾

Rent & costs

$
$
$
$

DSCR

1.19

0.01.01.252.0+

1.0–1.25

Finances with adjustments: expect pricier terms.

Monthly cash flow

+$377

Cash to close (est.)

$84,000

The ratio lenders actually check

A DSCR lender divides monthly rent by the full payment: principal, interest, taxes, insurance, association dues. No tax returns, no W-2s. At 1.0 the rent exactly covers the payment; most programs want 1.0 to 1.25 or better, and pricing improves as the ratio climbs.

Milwaukee duplexes are some of the strongest rent-to-price deals I see anywhere: many clear 1.25 at today's rates. Central Florida trades ratio for appreciation, and insurance presses on the payment, so run honest numbers before you write. Flip to Advanced for vacancy, expenses, cap rate, and cash-on-cash.

Next step

Found a ratio you like?

Send me the address. I'll pull real taxes, realistic rents, and comps, and tell you straight if it works.

01

What DSCR do I need?

Most programs want at least 1.0 and price best at 1.25 or higher. Below 1.0 usually means more down payment and a higher rate, if the lender offers it at all.

02

Does my income matter?

That's the point of DSCR: the property qualifies, not your tax returns. Lenders still check credit and reserves.

03

What rent number should I use?

A leased property uses the lease. A purchase uses the appraiser's market-rent opinion. Be realistic here, not hopeful: the appraisal will be.

04

Is DSCR the same as cap rate?

No. DSCR asks whether the deal finances; cap rate asks what the building earns unleveraged. The Advanced tab computes both.

More calculators

Mortgage calculator→BRRR calculator→All calculators→

Every number here is an estimate for planning: not a quote, a rate lock, or lending advice. I'm a broker, not a lender. When you're ready, I'll connect you with trusted lenders who can price your exact scenario.

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