What is a Debt Service Coverage Ratio (DSCR)?
A Debt Service Coverage Ratio, which is also known as DSCR, is a key metric in real estate finance that measures a property’s ability to cover its mortgage payments from its net operating income(NOI). Simply put, DSCR shows whether the income produced by a real estate property, such as a multifamily property, is sufficient to pay all debt obligations, including principal and interest, on an ongoing basis.
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