In real estate investing, financing is as important as finding the right property. One powerful tool that can help investors secure better loan terms is asset utilization—especially when the DSCR (Debt-Service Coverage Ratio) is under 1.

🔹 How It Works:

If your rental income falls short of covering your mortgage (PITI), you can use liquid assets to supplement your income. Lenders may count eligible assets as additional qualifying income by dividing eligible assets by 60.

🔹 Example in Action:

Rental income: $9,000

PITI: $9,500 → DSCR <1 (not qualifying)

Using $63,000 in assets → Adds $1,045 in income

New DSCR >1 → Higher LTV (80% instead of 75%)

🔹 Why This Matters:

✅ Helps investors qualify for better financing

✅ Increases borrowing power and flexibility

✅ Allows you to scale your portfolio faster

Understanding financing tools like this can be a game-changer for investors looking to maximize opportunities. Share your experience with DSCR's Below