DSCR - Posted by Reggie

Real Estate Investing Real Estate Financing
#1

Posted by Jim Rayner on March 25, 2001 at 14:41:08:

Debt Service Coverage Ratio also sometimes Abreviated as DCR.

Net Operating Income / Annual Debt Service = DSCR

or in this case 1.20 which is really the minimum value acceptable to your lender and typical of multiple unit deals.

#2

DSCR - Posted by Reggie

Posted by Reggie on March 25, 2001 at 11:40:14:

I’m buying a 75-unit apt. building and the lender tells me that the DSCR can not exceed 1.20. What does DSCR stand for and what is the formula for calculating.

Thank you
Reggie W.