Preferred DSCR Lending Partner — Program Highlights
1.0 minimum DSCR
660 minimum credit score
30-year fixed
Rate buy-downs available
30-day rate lock upfront
Blanket loans up to 20 properties
SFR • 2–4 unit • condo
STRs eligible via AirDNA
Purchase • delayed purchase • rate & term • cash-out
Retirement accounts (70%) & crypto (25%) count toward reserves
Phase 1
Buy It — DSCR Loan
Buy-downs available — a point typically trims ~0.25% off the rate. Test it: raise points, lower rate, watch the DSCR.
Flexible programs qualify down to 1.00; best pricing typically starts near 1.20+.
Loan Amount—
Monthly Payment (PITIA)—
Lender DSCR (Rent ÷ PITIA)— —
Total Cash to Close + Rehab—
DSCR lenders qualify the property, not your W-2. Most use gross rent ÷ PITIA.
Phase 2
Refi It — BRRRR Cash-Out
The assessor sees the ARV eventually — budget for reassessment.
New Loan (LTV × ARV)—
Payoff of Purchase Loan—
Net Carry During Rehab—
Cash Out at Closing—
Post-Refi DSCR— —
Post-Refi Cash Flow ($/mo)—
Most DSCR lenders want 3–6 months seasoning before a cash-out refi at full ARV — and if you buy with cash, delayed purchase financing can get your capital back without the wait. Terms vary by lender.
Phase 3
Depreciate It — Cost Seg
Partial asset disposition: the remaining basis in structural components demolished during the rehab (old roof, boiler, electrical, kitchens), valued by your cost seg provider and written off in the year of disposition.
Federal only. Massachusetts disallows bonus depreciation (added back on the MA return, recovered over regular MA schedules) — have your CPA model the state side separately.
Depreciable Basis (Bldg + Rehab)—
Year-1 Depreciation w/ Study—
+ PAD Disposition Write-Off—
Extra Deduction vs. Straight-Line—
Year-1 Tax Savings (net of study)—
100% bonus depreciation is permanent for property acquired after 1/19/2025 under the 2025 tax act. Illustration only — confirm with your CPA.
The Whole Deal, Together
Here's what happens when all three strategies work on the same property.
—
Total Cash In
—
Cash Back at Refi
—
Yr-1 Tax Savings
—
Capital Left in Deal
—
Annual Cash Flow
—
Cash-on-Cash*
Month 0
Purchase
—
Months 1–?
Rehab & Stabilize
—
Month ?
Cash-Out Refi
—
First Tax Return
Cost Seg Savings
—
Where Your Capital Goes — and Comes Back
10-Year Projection
Post-refi loan, rent, and value carried forward with the growth assumptions below.
| Year | Property Value | Loan Balance | Equity | Cash Flow | Cumulative CF + Tax Savings |
|---|
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