DSCR Borrowers: Do You Underwrite to Current Rent or Market Rent?

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  • Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes
    8mo

    if there is a tenant in place, should always underwrite your own deals based on current rent regardless of lender policy. This allows for stress testing and seeing if numbers will work when conditions aren't optimal. If its vacant, lenders will typically use market rents as you pointed out. Of the two, current rent in my opinion is more ideal because it gives a better real world scenario and doesn't rely on hoping to get market rent. Market rent is just a cherry on top

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