Good deal or am I missing something?

[Jeremy G.]

looking into getting a dscr loan 80% ltv.

$120k down payment

Debt service PITI will be $4600/mo

Gross rents $11000/mo

ratio of 2.39

My credit is 750 

Unless im missing something, i should be able to get a DSCR mortgage on this property easily?

[Greg Kasmer]

Jeremy - I would suggest you further detail out your expenses beyond PITI to understand whether 1) A bank would consider this a good project for a loan as well as 2) To see if this is a "good deal". I would suggest you consider assumptions around the following expenses:

- Vacancy Factor (Taken as a deduction to gross rents)

- Taxes (Assume higher takes in the future)

- Maintenance/Repairs - I would suggest 7% of gross rents as a starting point

- Management Fees - Depends on your local area and what managers charge.

- "Releasing/Unit Turn" Fee - The cost to "turn" a unit including repairs as well as re-leasing.

Once you add in all those expenses beyond your PITI you'll have a better idea of the Net Operating Income (NOI) and what would be available to pay off your monthly debt service.

Reach out to me if you want to discuss further. Good Luck!