Debt Service Coverage Ratio (DSCR) is an important constraint to understand when determining the leverage of your commercial multifamily loan. In fact, it is likely the first thing that your lender will look at when determining your loan amount.
What is the DSCR?
Debt Service Coverage Ratio represents the amount of cash flow you have left over after expenses divided by your debt payments on the property. This is calculated on an annual basis. Simply put, the […]