DSCR rent ratio and partially finished basements

[Greg Lovern]

We're looking at a property and our loan broker has suggested DSCR. My understanding is that we'd pay $1,000 for a rent appraisal which would have to come in with a ratio of at least 1.0 (i.e. at least as much rent as PITI) for the loan to be approved.

My concern is that 730sf is basement, and only 300sf of that is fully finished. the rest is just walls. Ceiling is exposed joists. Floor is just painted concrete, and that includes the 300sf which the county assessor counts as fully finished.

I'm reading that DSCR rent appraisers may not count partially finished space at all, and count fully finished basement space at only 25% of the rent of main floor space in the same house.

What are your thoughts--is this how it typically is for DSCR rent appraisals?