How is the DSCR calculated?
The DSCR is calculated by dividing the property's net operating income (NOI) by its annual debt service (total principal and interest payments). For example, if a property generates $120,000 in NOI and has an annual debt service of $100,000, the DSCR would be 1.2[1].
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Related Questions
What is a DSCR loan?
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What is a good DSCR ratio?
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What are the benefits of a DSCR loan for real estate investors?
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