DSCR Breakdown - BPs NOI Calc

[Zac Vaughan]

Hey BP community, I am currently looking at DSCR loans and my numbers never seem to add up to BPs, and I can never get a 1:1 it's always way less than 1.

Here is an example of a property I picked out just for practice. 

BP is telling me that my NOI is $56,424 but when I do the math ($6,800x12=$81,600) - ($4,584x12=$55,008) = $26,592 NOI 

I then take that $26,592/ ($2,487x12= $29,844) = .89

I've tried this formula with numerous properties and have never been able to get over 1. Can someone please explain what I am doing wrong?

[Stephanie P.]

Quote from @Zac Vaughan:

Hey BP community, I am currently looking at DSCR loans and my numbers never seem to add up to BPs, and I can never get a 1:1 it's always way less than 1.

Here is an example of a property I picked out just for practice. 

BP is telling me that my NOI is $56,424 but when I do the math ($6,800x12=$81,600) - ($4,584x12=$55,008) = $26,592 NOI 

I then take that $26,592/ ($2,487x12= $29,844) = .89

I've tried this formula with numerous properties and have never been able to get over 1. Can someone please explain what I am doing wrong?

 From most lender's standpoint, they only use the gross income divided by the mortgage payment including any association costs.  It's based on the gross, not the net.