What is DSCR?

The Debt Service Coverage Ratio (DSCR) is a key metric in real estate investing. It’s a ratio that compares your property's income to its debt obligations, revealing whether your property’s income can cover its mortgage payments. A higher DSCR means better cash flow and a stronger investment—exactly what lenders want to see!

Why is DSCR important?

When applying for a loan, especially for an investment property, lenders closely examine your DSCR. A strong DSCR not only increases your chances of approval but also ensures your property generates enough income to cover its debts—and then some. Positive cash flow is essential for building wealth and stability through real estate.