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Commercial Real Estate Investing
HomeForumsCommercial Real Estate InvestingDSCR for Value-Add
Joshua Nackenson's profile image
Joshua Nackenson's profile image
Joshua Nackenson
  • Member since Feb 21, 2020
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Joshua Nackenson's profile image
Joshua Nackenson's profile image
Joshua Nackenson
  • Member since Feb 21, 2020
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Joshua Nackenson
10
Votes |
15
Posts
Commercial Real Estate Investing

DSCR for Value-Add

Joshua Nackenson
Posted Jan 29 2023, 11:42

I'm curious how banks looks at DSCR for properties that are value-add. Specifically, a property where there is not any significant cap-ex, simply gross mismanagement.

ie. The market is NOT over-saturated, but rents are 30-50% below market rents.

Will the banks underwrite based on the current NOI or based on projected NOI for Year 1?

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