What is DSCR? (And Why Every Passive Investor Must Know)
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What is DSCR? (And Why Every Passive Investor Must Know)
Debt Service Coverage Ratio (DSCR) simply answers one question: "Does this property make enough money to pay its own mortgage?"It's like checking if your salary covers your rent. If your rent is $1,000 and you earn $1,250, you're covered. If you only earn $900, you're in trouble.For a property, the math is:DSCR = (Property's Annual Net Income ...
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