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1076 - 8 More Commonly Asked Questions and Answers to DSCR Loans by Robin Simon

BiggerPockets Daily

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Understanding and Investing in Sub One DSCR Loans

This chapter delves into the concept of sub one Debt Service Coverage Ratio (DSCR) loans and explores the rationale behind obtaining loans with a ratio under one. It discusses scenarios where investing in properties with negative cash flow can still be advantageous, particularly in markets with high appreciation. The chapter also highlights the benefits of fixed-rate and fully amortized DSCR loans for increasing cash flow over time.

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