№ 02 · Calculators
Will this rental qualify for a DSCR loan?
Lenders divide the rent by the payment. So do we. Find my number in seconds.
My deal
That's 25.0% down.
My DSCR
1.19
Marginal
Rent covers the payment with a thin margin. Expect a rate adjustment from most DSCR lenders.
My monthly cash flow
+$377
My cash to close
$84,000
The formula lenders actually use
A residential DSCR lender divides the property's monthly rent by the full monthly payment: principal, interest, taxes, insurance, and 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.
Below 1.0 is not an automatic no. Some lenders price negative-DSCR loans with more down payment and a higher rate. But as a rule of thumb, 1.25 or higher is where the good terms live.
Why investors run DSCR deals in our markets
Milwaukee remains one of the strongest rent-to-price markets in the country. Duplexes and single-family rentals on the city's south side frequently clear a 1.25 ratio at today's rates, which is exactly what DSCR lenders want to see.
Central Florida trades some ratio for appreciation and demand. Orlando-area rents are strong, but higher insurance costs press on the PITIA denominator, so run honest insurance numbers before you write an offer. Toggle the advanced tab to layer in vacancy, maintenance, and management for the full operating picture.
FAQ · Preguntas frecuentes
Questions, answered.
Straight answers before you run your own numbers.
01
What DSCR do I need to qualify?
Most DSCR programs look for at least 1.0, and many price best at 1.25 or higher. Under 1.0, expect a larger down payment and a higher rate if the lender offers it at all.
02
Does DSCR use my personal income?
No. That is the point of the product. The property's rent qualifies the loan, not your tax returns. Lenders still check credit and reserves.
03
What counts as the rent number?
For a leased property, the lease. For a purchase, the appraiser's market-rent opinion on Form 1007. Use a realistic market rent here, not a hopeful one.
04
Is DSCR the same as cap rate?
No. DSCR compares rent to the loan payment and answers whether the deal finances. Cap rate compares net operating income to price and answers what the building earns unleveraged. The advanced tab computes both.
Next step
Run a real deal with me.
I will pull comps, real taxes, and realistic rents for any property in Milwaukee or Central Florida, y hablamos claro about whether it works.
More calculators
See all calculatorsEvery number on this page is an estimate for planning, not a quote, a rate lock, or lending advice. reThought Real Estate is a brokerage, not a lender. When you are ready, we connect you with trusted lenders who can price your exact scenario.
