What is a good Debt Service Coverage Ratio for rental property?

What is a good Debt Service Coverage Ratio for rental property?

Hello, I'm calculating my debt service coverage ratio for a purchase. I want to make sure the numbers are right. I'm at a 1.67. I'm assuming it's over the 1.25 so I should be able to qualify for the loan amount with good credit.

Thanks,
Stan

Timestamps
[00:26] A good DSCR for a rental property to qualify for the loan amount
[00:34] It’s more intensive on commercial deals
[00:41] Basic DSCR loans for residential type of investment properties for one to four units
[00:50] The DSCR calculation for a purchase
[01:13] Get the best pricing for these types of loans

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🔎 The video discusses the ideal debt service coverage ratio (DSCR) for rental properties.
🔎 The recommended DSCR is 1.25 or better for residential investment properties.
🔎 For commercial deals, the DSCR calculation is more intensive.
🔎 The DSCR is calculated by dividing the gross income by the total debt service.
🔎 If the DSCR is above 1.25 and the credit score is good, the borrower is likely to receive the best pricing for their loan.
🔎 The speaker offers a free strategy call to help real estate investors create a finance plan to grow their business.
🔎 The video's host, Bo Eckstein, has over 20 years of experience in the lending industry.
💰 #DSCR #RentalProperties #RealEstateInvesting

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