HI Troy,Regarding lending based on DCR and cash based debt coverage, DCR is mainly used by commercial, local, and business oriented bank loans, while conventional financing and residential 1-4 lending generally focuses on debt to income.45% Debt to Income (DTI) = $2.22 dollars of cash flow or gross income needed to be shown for each dollar of monthly obligation you're looking to qualify for50% Debt to Income (DTI - $2.00 dollars of cash flow or gross income needed to be shown for each dollar of monthly obligation you're looking to qualify forThe above are some examples as each bank has different ranges of requirements.If the max is 45% DTI and the borrower is seeking a mortgage of 1500 but net rents are 750 then they are seeking to qualify for a net -750 which requires 2.22 times the income to receive an approval which means they need 1665 gross monthly income.Hope that example helps conceptually explain the residential vs commercial lending aspect.

It is a lot easier to hit a consistent single or a double  instead of  a homerun on each deal. 

Welcome to BP community @Pamela Soto  It is a great place to meet new friends and learn about various aspects of real estate and more.

There is a wealth of information in here for any and all aspects of this business.

Welcome to BP community @Mitrah Rasti  It is a great place to meet new friends and learn about various aspects of real estate and more. 

Welcome to BP community @Andy Hailey  It is a great place to meet new friends and learn about various aspects of real estate and more. 

Martin brought up the time aspect, which I think is more important.

Remember - A Realtor has spent money going to school, studying different aspects of real estate including law (which a lot of landlords do not know), we are required by law to continue educating ourselves.

It is a great place to meet new friends and learn about various aspects of real estate and more.

The 10 year Treasury has always been anchored by the fed funds rates and spreads have consistently been 200-300 basis points over a 20 year period of time.