Calculator
Will the rental carry itself?
The debt service coverage ratio: whether the rent covers the payment by enough for a lender to qualify the property on its own income.
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Cash Flow / mo
-$282
Cap Rate
5.62%
Loan Amount$375,000
Down Payment$125,000
Mortgage Payment / mo$2,622
Origination Fee$5,625
Total Closing Costs$13,625
Cash Needed to Close$138,625
Gross Rental Income / yr$38,400
Operating Expenses / yr$10,320
Net Operating Income / yr$28,080
DSCR0.89
Cash-on-Cash Return-2.44%
DSCR ≥ 1.0 qualifies. DSCR ≥ 1.25 unlocks best rates.
What this is telling you
Most lenders want a ratio of at least 1.0, and price better above 1.2. Below 1.0 the property is not paying for itself.
An estimate from the assumptions above, not a quote and not an offer to lend. Rates, taxes, insurance and mortgage insurance all vary by property, credit profile and day.
Want somebody to check the assumptions?
Send us the numbers you put in and we will tell you which of them an underwriter would push back on.
Or call(503) 555-0175and ask for whoever is free.
