DSCR stands for “Debt-Service Coverage Ratio.” It is a measure of the ratio of income (specifically, Net Operating Income) to debt (Total Debt Service). Investors will use this to work out what the margin of safety is between the expense of paying back the bank and the total rent they receive. What is DSCR used [...]
Investors have a number of ways to help them measure the value and profitability of rental income property. The most popular metric for investors is the capitalisation rate, or cap rate. The cap rate in real estate is simply the yield, or rate of return, on a property. The cap rate is calculated by dividing [...]