3d • General discussion
📐 REFERENCE — DSCR:
Full Breakdown Debt Service Coverage Ratio is the metric that determines whether your exit strategy works.
Here is the complete framework.
--- The Formula: DSCR = Gross Monthly Rental Income ÷ Monthly Debt Service
(PITI) P = Principal I = Interest T = Taxes (monthly escrow) I = Insurance (monthly escrow)
--- AspiRE Thresholds: - 1.15+ → DSCR lender approval range (standard AspiRE floor)
- 1.10–1.14 → Conditional zone — some lenders will approve with compensating factors
- 1.00–1.09 → Property barely services its debt — no lender touches it
- Below 1.00 → Property cannot pay its own debt from income
--- Example (Oct 2026 Beast Council Review deal):
- Gross rent: $2,400/month - Estimated PITI at DSCR loan terms (9%, 80% LTV): $2,180/month - DSCR: 2,400 ÷ 2,180 = 1.10
- Result: Below AspiRE 1.15 floor → DSCR loan off the table
- Fix: Rent needed was $2,500–$2,600/month to clear the threshold --- How to Fix a DSCR Problem:
1. Renegotiate the purchase price down → reduces loan amount → reduces debt service
2. Confirm higher achievable rent → call a PM for a current market rent opinion
3. Shift exit strategy → hard money BRRRR with conventional refi instead of DSCR
4. Walk the deal → if it doesn't pencil at conservative rent, it doesn't pencil
--- Beast Mode Assignment: Run DSCR on the last deal you analyzed.
Did it hit 1.15? If not — what would need to change (price or rent) to get it there?
Post your numbers below.
🔴 Tuesday 12PM — Beast Council Review: meet.google.com/gjq-bvha-yco
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📐 REFERENCE — DSCR:
skool.com/aspire
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