Commercial · Calculator
DSCR Investment Property
Property cash flow qualifies — not your tax returns. Calculate DSCR, monthly cash flow, and the rent you\u2019d need at every lender threshold.
Property & Loan
= 25.0% of price
Income & Expenses (Monthly)
Lender uses actual or appraisal-supported market rent.
DSCR
1.14
Positive Cash Flow
Cash Flow
Loan Detail
Rent Needed by DSCR Threshold
Required market rent at each lender threshold, given your current expenses + P&I.
| DSCR | Tier | Rent Needed |
|---|---|---|
| 0.75 | Limited Cash Flow | $2,373 / mo |
| 1.00 | Break Even | $2,898 / mo |
| 1.25 | Strong Cash Flow | $3,422 / mo |
| 1.50 | Excellent Cash Flow | $3,946 / mo |
| 2.00 | Premium Investment | $4,995 / mo |
Frequently asked
About this calculator.
What is DSCR and why does it matter?
DSCR (Debt Service Coverage Ratio) measures whether the property's rental income covers its debt payment. DSCR = NOI ÷ debt service. A DSCR of 1.0 means the rent exactly covers the mortgage; 1.25+ means strong cash flow. DSCR loans qualify the property — not the borrower's personal income — making them ideal for self-employed investors, multi-property landlords, and anyone whose Schedule E doesn't reflect actual cash flow.
What DSCR do I need to qualify for a loan?
1.0+ qualifies for most DSCR programs at standard pricing. 1.25+ unlocks the best rates. True Blue has access to programs that go down to 0.75 with rate add-ons, and "no-ratio" DSCR programs that don't require positive cash flow at all (with strong reserves and credit).
What expenses count for NOI?
Standard NOI includes property taxes, insurance, and HOA. Property management fees and maintenance reserves are sometimes added by lenders for stricter underwriting; this calculator uses the standard (lender-friendly) definition. Vacancy is usually NOT subtracted on DSCR programs — full market rent is used.
What's the minimum down payment on a DSCR loan?
Typically 20–25% down for purchase, 25–30% for cash-out refi. Some lenders allow 15% down with DSCR ≥ 1.25 and credit ≥ 700. The lower the LTV, the more flexibility on the DSCR side.
Can I close a DSCR loan in an LLC?
Yes — DSCR loans are designed for LLC vesting. This is the default product for buy-and-hold investors scaling beyond the 10-property Fannie limit. Foreign-national versions exist too.
Scaling beyond 10 properties?
DSCR is the default move.
Once you hit Fannie\u2019s 10-financed-property cap, DSCR is how investors keep buying. We have placement at every major DSCR wholesale lender — purchase, cash-out, and short-term-rental variants.
Prefer to talk first? Call (707) 583-3666