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DSCR Strategy · 6 min read

How to Improve Your DSCR Ratio Before Applying

A stronger DSCR can expand investor loan options, but the right fix depends on whether the pressure is rent, expenses, debt service, or reserves.

Start by identifying the pressure point

DSCR is net operating income divided by debt service. If the ratio is tight, isolate whether the problem is low rent, high expenses, high loan payment, or all three.

Use the calculator to change one assumption at a time. This makes it easier to see which adjustment has the biggest effect.

  • Increase rent only when supported by market data or lease terms.
  • Review taxes, insurance, HOA, management, and maintenance assumptions.
  • Test a lower loan amount, different rate, or longer amortization assumption.
  • Preserve reserves because liquidity may also affect available options.

Avoid overstating the property

A better-looking DSCR is not useful if the assumptions cannot be supported. Conservative inputs make the broker review cleaner and reduce surprises later.

When to request broker review

If the DSCR improves under realistic assumptions, save the scenario and request a broker review with the supporting rent and expense details.

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