DSCR Direct

How to Use the Deal Analyzer

The deal analyzer helps real estate investors evaluate a potential rental property before making an offer. Enter the purchase price, financing terms, rent, and operating expenses to see whether the deal produces positive cash flow and qualifies for DSCR financing.

The DSCR ratio is the most important metric for loan qualification. It equals monthly rent divided by total monthly payment (PITIA). A ratio of 1.25 or higher gets the best rates, while ratios between 1.0 and 1.25 still qualify with competitive pricing. Even ratios below 1.0 have programs available - though rates adjust accordingly.

Cash-on-cash return measures how hard your invested capital is working. It divides annual cash flow by your total cash invested (down payment plus estimated closing costs). Cap rate divides NOI by purchase price and is useful for comparing properties regardless of financing. Both metrics help you compare this deal against other investment opportunities.

For the most accurate analysis, use actual rent comparables and real expense data. Once you have confirmed the deal works, run the numbers through the DSCR Direct pricer to get live rate quotes from hundreds of lenders.