DSCR=1 Class A Property

[Peter W.]

My real estate agent brought me a deal from another investor. Purchase price is probably 5-10% below market value. A+ area which has appreciated 1-2% percent more than surrounding areas over the past 5 years. Only issue is the debt service coverage ratio is about 1.0 piti (20% down) will end up at about 2400/mo rent is likely 2400-2500.

There is some value add work which can be done in terms bringing the finished basement up to fire code so it can be considered living space.

What do y’all think.