1007 Market Rent Came in Lower Than Mortgage Payment...

[Branden Barber]

I am about to close on a my first rental property via a DSCR loan. All has been going well and I got the property at a great price. The appraisal just came back at 335k (not terrible, but I thought it would be closer to 350k) and my purchase price is 295k, so we are good there. However, the market rent came in at $1,900, and my mortgage payment with escrow is about $2,200. The previous tenant under the seller's ownership was paying $2,100 per month before a COMPLETE remodel, and I have a lease agreement signed and a deposit from new tenant's at $2,675 per month, well above their market rent estimate.

So how screwed am I? I am already putting 25% down, so I cannot afford to put more cash down. What would my options be here?

Thanks!