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What is Debt Service Coverage Ratio ("DSCR") in real estate?


What is DSCR Debt Service Coverage Ratio?


DSCR means Debt Service Coverage Ratio. The DSCR Debt Service Coverage Ratio is a ratio calculated by taking a rental property’s operating income and dividing it by the cost of a loan. The DSCR Debt Service Coverage Ratio is a key metric that private lenders and commercial lenders use to determine the amount of a loan they are willing to provide for a single-family or multi-family rental property.


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