Posted by Fred on January 16, 2000 at 11:27:47:
Thanks for responding. A DSCR is “Debt Service Coverage Ratio.” DSCR is calculated by taking Net Operating Income(NOI) divided by Annual Debt Service(ADS). For example: a property has a NOI=$10000 and an ADS=$7200, has a DSCR of 1.39. This means it generates enough income to coverage yearly mortgage payments. I hope this clears up any confusion.