How to Calculate DSCR

Описание к видео How to Calculate DSCR

A simple way to calculate your DSCR and measure your cash flow is to divide the monthly rent by the PITIA (principal, taxes, interest, insurance, and association dues). The resulting ratio lends insight into your ability to pay back the loan based on your property’s monthly rental income.

DSCR = Gross Rent Lease or Form 1007/216 divided by PITIA

DSCR greater than 1.0 means there is sufficient cash flow to cover the debt service

DSCR less than 1.0 means there is not enough cash flow to cover the debt service

To learn more, visit www.lenddscr.com.

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