I have been working through a structure I call the DSCR Stack, and I wanted to share the numbers because the math is what makes it interesting.

It is two layers. About 70% senior financing — a DSCR loan — and about 30% seller financing. On a $265,000 example: the senior layer is $185,500 and the seller carries $79,500.

The seller layer in this example is 6% interest-only for 5 years. That is $4,770 a year, $397.50 a month, and the $79,500 principal is still owed at the end as a balloon.

From the seller side: $185,500 at closing, minus 5% closing costs ($13,250), is $172,250 cash at closing. Add the $23,850 of interest over 60 months and the $79,500 principal, and the projected total is $275,600. Projected, not guaranteed — and it assumes no existing mortgage payoff.

The parts that matter as much as the math: the senior lender has to know about the subordinate financing. Subject-to means the title can move while the mortgage stays in the seller's name, and the seller can stay personally liable, with due-on-sale risk. A land trust holds title but it does not remove the liability or stop a due-on-sale call, and there is no guaranteed 30-day recovery. The protection package is a clear note, a recorded security interest with the right priority, an independent payment servicer, and counsel on both sides. And the $79,500 balloon in year 5 needs a real plan — what if rates rise, value falls, or rent comes in lower?

I recorded a 15-minute walkthrough of this exact example. If you want it, send me a message here and I will share it.