Cap rate
7.37%
Calculator · DSCR investor
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Will this rental cash flow?
Live debt-service coverage, cap rate and program eligibility for DSCR investor loans. Built for owners and investors, with no personal information required.
Property scenario
Updates live
The property
Purchase price
$525,000
$
Down payment
$131,250 · 25%
$
Income: rent
Gross monthly rent
$4,700/mo
$
Vacancy & credit loss
5%
% / yr
Operating expenses
Property tax
1.10%
% / yr
Insurance
$1,800/yr
$
HOA
$0/mo
$
Management fee
8% of rent
% rent
Maintenance / capex reserve
5% of rent
% rent
Loan terms
Interest rate
7.250%
% APR
Loan term
off
Verdict
DSCR
1.20
qualifies
Qualifies · most programs
Solid coverage. NOI exceeds debt service by 20%.
You'll qualify with most lenders at standard pricing. A few charge slightly more below 1.25, so it's worth comparing.
Monthly cash flow
$537
PITIA / mo
$3,317
Annual cash flow
Gross rent+$56,400
Vacancy & credit loss–$2,820
Property tax–$5,775
Insurance–$1,800
Management (8%)–$4,512
Maintenance (5%)–$2,820
NOI$38,673
Debt service (P&I × 12)–$32,233
Annual cash flow$6,440
Program eligibility
based on your DSCR and LTV, using common 2026 program thresholds
DSCR standard · 30-yr
DSCR ≥ 1.25 · LTV ≤ 80%
borderline
DSCR expanded · 30-yr
DSCR ≥ 1.00 · LTV ≤ 75%
Qualifies
DSCR no-ratio
DSCR < 1.00 ok · LTV ≤ 70%
LTV high
DSCR 40-yr IO
use IO to lift DSCR · LTV ≤ 75%
Qualifies with IO
DSCR loans, explained.
What does DSCR mean? +
DSCR = Debt Service Coverage Ratio = Net Operating Income ÷ Annual Debt Service. A DSCR of 1.0 means the rent (after expenses) exactly covers the mortgage. 1.25 means there's 25% room above debt service, which is what most lenders want to see. Below 1.0, you're covering part of the payment yourself each month.
Why don't DSCR lenders care about my personal income? +
Because they're underwriting the property's cash flow, not your W-2. That's why DSCR is the go-to for self-employed investors, anyone scaling past Fannie/Freddie's 10-property cap, or owners who use depreciation aggressively. Trade-off: rates are 1–2 points higher than conforming, and down payment is usually 20–25%.
How does the interest-only option help? +
IO lowers your monthly debt service because you pay only interest, which raises your DSCR. It can help if you're just below a program threshold. When the IO term ends (usually after 10 years), the loan switches to a fully amortizing payment over the remaining term, which is often a noticeable increase.
What rates should I expect on DSCR? +
Typically 100–200 basis points above a 30-year conforming rate, which reflects non-QM underwriting. Pricing varies between lenders, so it's worth comparing several before you lock.
Is my cap rate good? +
Depends on the market. Coastal CA: 3–5% is common. Denver / Boulder: 4–6%. Inland FL: 6–9%. Cap rate is only part of the picture. Leverage changes your cash-on-cash return, which is what most investors focus on. We can model both with you.
Continue exploring
Mortgage
What's the monthly on a primary residence?
Standard PITI calculator with state-aware defaults and a payment breakdown chart.
AffordabilityHow much house can I afford?
Work backward from your income and debts. See the price range that keeps DTI in the green.
RefinanceIs it worth refinancing?
Break-even math that includes closing costs and the cost of restarting your loan term.
DSCR estimates only. Program thresholds shown are typical for the non-QM investor lending market in 2026. Actual lender requirements vary. Not a commitment to lend. Buku Lending, Inc. · NMLS 2113850 · CA-CFL 60DBO-135330. Licensed in CA, CO, FL. Equal Housing Opportunity.
Most lenders will fund this as it stands. If market rent supports about $135/mo more, you'd reach 1.25 and the best pricing tier, so I'd check comparable rents before we shop it.