Financial Advisor · FL · Member since 2024 · 442 posts · 100 votes
📉 You run your numbers - 1.25 looks solid.
Then the term sheet comes back… 0.97.
And your leverage just disappeared.
🏦 Here's the truth: lenders don't use the same DSCR calculators you find online.
They stress-test your deal using higher rates, apply vacancy and management factors, and often cap your income at market rent, not what your tenant actually pays.
The result?
Your “perfect” deal suddenly fails the underwriting model - even when the cash flow feels fine in real life.
đź’ˇ In our new video, we unpack the real math behind DSCR underwriting - and show how to fix it before you apply.
You’ll see what actually moves your ratio:
– market rent adjustments
– expense load assumptions
– amortization tweaks
– rate buy-down strategies
đź’¬ If your DSCR deals keep getting shaved down at funding time, this will explain why - and how to avoid it next time.