Scaling Rentals with DSCR Loans — Who’s Using Them?

[Kelly Schroeder]

I've been digging into different ways investors are financing growth, and DSCR loans keep coming up as a strong option. Instead of relying on personal income or W-2s, lenders focus on the property's ability to generate rental income.

For those of you scaling into multiple rentals, have you used DSCR loans as part of your strategy? Did it make acquiring properties smoother compared to traditional financing?

Curious to hear what others have experienced — pros, cons, or tips for making them work effectively.

[Jay Hurst]

Quote from @Kelly Schroeder:

I've been digging into different ways investors are financing growth, and DSCR loans keep coming up as a strong option. Instead of relying on personal income or W-2s, lenders focus on the property's ability to generate rental income.

For those of you scaling into multiple rentals, have you used DSCR loans as part of your strategy? Did it make acquiring properties smoother compared to traditional financing?

Curious to hear what others have experienced — pros, cons, or tips for making them work effectively.

 Look out for pre-payment penlaties. To get rates below conventional as mentioned above will take 3-5 year pre-payment penalty. These often get glossed over by both broker and borrower but are very importnant to understand in a likely falling rate interest environment.