Can I use a DSCR loan to fund a down payment for another commercial property?

[John Divine]

I just closed on a warehouse that I expect should start generating around $7,000/month in cash flow in the new year. (If it matters for the question I closed on the deal with a 50/50 partner and we own the property through an LLC). Once we get a tenant and this cash flow starts coming in (Q1 2024), I'm looking for ways to leverage this into further growth.

Can we then take out a DSCR loan on this warehouse, which we bought all-cash, to put a down payment on another industrial property? My loose understanding is that banks look for a 1.25x DSCR, meaning we could take out a loan that cost us about $5600 monthly. Even if we took out a smaller loan, I would think we'd be able to get a meaningful DSCR commercial loan of between $400k-$500k (correct me if my math is wrong).

My question is: A) is this accurate? and B) would we then be able to put this sum to work as a down payment on another commercial property and fund a much larger purchase of a second property with another DSCR loan secured against the second property and the cash flows being generated by it?

It should be noted that the property we bought is a ground lease with 13 years remaining on it and the option to renew for another 49 years for a fee in 2036.