How to Calculate DSCR for Rental Property: Step-by-Step Formula
How to Calculate DSCR for Rental Property: Step-by-Step Formula
Understanding your rental property's financial performance is crucial for making informed investment decisions. One of the most important metrics lenders and investors use is the Debt Service Coverage Ratio (DSCR). If you're considering a loan for investment property or want to evaluate your current rental portfolio, knowing how to calculate DSCR will give you critical insight into your property's profitability and lender qualification potential.