DSCR stands for Debt service coverage ratio.

It takes money to advertise, it takes money for closing, it takes money for payments, it takes money for reserves, but it's made up for in the Option Fee received.

These numbers should be determined using a combination of the historical financial data available, feedback from your property management company, your business plan, and the property characteristics.Generally, you can expect per unit numbers like this:Repairs & Maintenance: $200 – $500 per unitAdministrative: $150 – $350 per unitUnit Turnover: $200 – $300 per unitContract Services: $200 – $500 per unitUtilities: $800 – $1,200 per unitAdvertising $100 – $300 per unitPayroll $1,000 – $1,600 per unit (very market specific)Insurance: (very market specific)RE Taxes: (very county specific)Again, these are very general per unit numbers but they should help provide you with guidance. 

In this example, I didn’t include any CapEx costs and the loan is 75% of the value.LTCWith a LTC structure, the lender is willing to lend funds as a percentage of the underlying asset’s purchase price plus renovation/repair costs (project cost).LTC financing is generally viewed as favorable for the borrower albeit, riskier, due to higher leverage, less debt service coverage, and renovation risk in the form of underbudgeting.LTC = Loan Amount / Project CostsMost often, lenders are willing to offer LTC terms structured as a bridge loans.

They are full service with reasonable rates.

In total, about $100K of reserves was spent as of January 1, 2024.

Under IRS Publication 527, you can depreciate this 10% portion of your home over 27.5 years using the straight-line method.I am a Certified Public Accountant and I offer bookkeeping and tax services related to real estate.

I have been working on some projects with them but would like more qualified clients on my list.What I am looking forI am looking for long term relationship with clients who want a reliable service working on their existing portfolio but also do bigger rehab projects for small properties.

They offer a background check / tenant screening service, which is paid by tenant.  

Hey @Kay Li, Given we are accountants, we cannot promote our services on BP as its against the rules.To help in your search:be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise.