DSCR Investor Loans—Qualify on Cash Flow, Not Tax Returns
Texas & Florida rental investors use DSCR to scale portfolios with simplified documentation and predictable underwriting.
What Is DSCR?
DSCR stands for Debt Service Coverage Ratio—a metric that measures whether a property's cash flow can support its debt obligations.
The calculation is straightforward: divide the property's Net Operating Income (NOI) or rental income by the annual debt service (principal and interest payments). The result tells lenders how much cushion exists between income and expenses.
For investor-focused financing, DSCR loans allow you to qualify based on the property's cash flow rather than your personal tax returns. This approach simplifies documentation and creates a repeatable framework for portfolio growth.
Many lenders target coverage above 1.0x or higher; stronger coverage typically improves terms and pricing. The exact threshold varies by program and scenario.
DSCR Calculation Flow
Rental Income
Monthly rents collected from the property
Subtract Operating Expenses
Taxes, insurance, HOA, vacancy allowance, maintenance
Net Operating Cash Flow (NOI)
Annual NOI ÷ Annual Debt Service = DSCR
Result: DSCR Ratio
Higher ratio = stronger coverage = better terms
DSCR Benefits
Streamlined underwriting designed for investors who want to scale efficiently
Docs-Light
Minimize personal income paperwork; focus on the asset.
Scalable
Replicable framework for portfolios and repeat acquisitions.
Predictable
Cash-flow based underwriting helps set clear expectations.
Flexible Terms
Purchase, rate/term refi, or cash-out for future deals.
Eligible Properties
DSCR financing works across a range of investment property types
Markets Served
Texas & Florida
Typical Structures & Considerations
Understanding the framework for DSCR investor loans
Important Disclaimer
All structures shown are illustrative only. Actual terms are scenario-dependent and subject to change based on property type, location, borrower profile, and current market conditions. No rates or leverage promises are made. Book a call for current options.
DSCR Calculator
Estimate your property's debt service coverage ratio
Property Details
Calculated Results
For education only. Actual underwriting methods vary by lender and program. This calculator provides a simplified estimate and does not guarantee loan approval or specific terms.
Common Use Cases
How investors leverage DSCR financing to grow their portfolios
Purchase a Stabilized Rental
Quick path from offer to closing using lease or rent evidence to demonstrate cash flow.
Refinance to Improve Cash Flow
Recast your loan structure based on current property performance and market conditions.
Equity Unlock for Next Deal
Cash-out refinance to fund down payments, renovations, or additional acquisitions.
Portfolio Scaling
Repeatable framework across Texas and Florida assets to build your investment portfolio systematically.
Borrower Profile & Documentation
What lenders typically look for in DSCR loan applications
Typical Borrower Profile
Investor or LLC preferred; first-time investors considered case-by-case
Acceptable experience levels range; cleaner files move faster
Property must be stabilized or have clear rent evidence
Reserves typically required (amount varies by scenario)
Common Documentation
Note for STRs: AirDNA reports or historical income statements may help demonstrate performance. Policy varies by lender.
Real-World Scenarios
See how DSCR financing works across different property types and investor goals
SFR in Dallas, TX
1Inputs
- •Property: Single-family rental, stabilized
- •Goal: Cash-out refinance to fund duplex acquisition
- •Current rent: $2,800/month with strong lease in place
- •Existing equity: Significant appreciation since purchase
2Structure
- •DSCR analysis confirmed strong coverage above 1.25x
- •Cash-out structure provided liquidity for next deal
- •Interest-only option evaluated to maximize cash flow
- •Appraisal and rent schedule completed efficiently
3Outcome
- •Closed in 30 days with clear documentation
- •Unlocked $80k+ equity for duplex down payment
- •Maintained positive cash flow on original property
- •Repeatable framework established for future acquisitions
4-Plex in Tampa, FL
1Inputs
- •Property: 4-unit multifamily, all units leased
- •Goal: Purchase with DSCR financing
- •Rent roll: $6,400/month total across 4 units
- •Buyer: Experienced investor with LLC structure
2Structure
- •Appraisal confirmed market value and rent comps
- •DSCR calculation showed 1.15x coverage
- •Escrows set up for taxes and insurance
- •Standard reserves required based on unit count
3Outcome
- •Smooth closing with predictable timeline
- •Clear understanding of monthly obligations
- •Property cash flows as projected
- •Investor planning next acquisition using same structure
STR in Orlando, FL
1Inputs
- •Property: Short-term rental near theme parks
- •Goal: Purchase with DSCR financing
- •Income: Historical AirDNA data and booking statements
- •Seasonality: Strong peak season, softer summer months
2Structure
- •Scenario-dependent underwriting for STR
- •Historical performance and market comps reviewed
- •Seasonal cushion factored into coverage analysis
- •Higher reserves recommended due to STR nature
3Outcome
- •Lender approved with clear documentation of income
- •Borrower planned for seasonal cash flow variations
- •Property management track record helped case
- •Exit strategy discussed for potential long-term rental conversion
The Process
Three clear steps from initial conversation to closing
Book a Call
10–15 minute conversation to outline your property details, investment goals, and timeline expectations.
Options & Term Sheet
We present available structures, documentation roadmap, and realistic timelines based on your scenario.
Diligence & Close
Title work, appraisal, and closing checklist. Stay updated at every step until funding.
Exit & Portfolio Strategy
DSCR financing fits into your long-term investment planning
Rate/Term Refinance Later
As market conditions change or your property appreciates, you can refinance to improve terms, adjust payment structure, or extend the loan period.
Cash-Out for Next Purchase
Unlock equity from performing properties to fund down payments on additional acquisitions, creating a systematic growth strategy.
Bridge → DSCR Transitions
Many investors use Bridge loans for acquisition and renovation, then refinance into DSCR once the property is stabilized and leased. This "acquire, improve, stabilize, refinance, repeat" cycle is a proven portfolio-building strategy.
Learn about Bridge LoansExplore Other Programs
Markets & Ticket Sizes
Divine Capital Collective serves rental property investors across Texas and Florida with DSCR financing solutions.
Across SFR portfolios, small multifamily, and investment properties
Frequently Asked Questions
Common questions about DSCR investor loans
Ready to Scale with DSCR? Book a Call.
Schedule a 15-minute conversation to discuss your property and investment goals
Investor Resources
Educational content to help you make informed financing decisions
DSCR Loans Explained: Qualifying on Cash Flow
Deep dive into how DSCR underwriting works and what investors need to know.
Bridge → DSCR: Stabilize, Refi, Repeat
Learn the proven strategy for acquiring, improving, and refinancing investment properties.
STR vs. LTR: Underwriting Notes Investors Should Know
Compare short-term and long-term rental financing considerations and documentation requirements.
Important Compliance Notice: All scenarios, structures, and examples presented on this page are illustrative only and do not constitute a commitment to lend or guarantee of specific terms.
Program guidelines, rates, leverage, prepayment structures, and documentation requirements vary by lender, property type, location, borrower profile, and current market conditions. Divine Capital Collective does not publish or promise rates, terms, or loan-to-value ratios online.
We encourage you to book a call to discuss current options specific to your investment scenario. All financing is subject to credit approval, property evaluation, and lender underwriting criteria.