Portfolio DSCR calculator: will the whole group qualify?
Enter up to 10 rentals. You get each property's ratio, the combined ratio a blanket loan is tested on, and which properties pull it under 1.05x.
Carried 1.05x portfolio minimum
Portfolio DSCR
1.07x
$5,450 of combined rent against $5,102 of combined PITIA is 1.07x. Property 3 is under 1.05x alone, but the others carry it.
- Combined rent / month
- $5,450
- Combined PITIA / month
- $5,102
- Total loans
- $565,000
- Extra rent needed for 1.05x
- $0
| Property | PITIA | DSCR | Rent short |
|---|---|---|---|
| 1 | $1,567 | 1.18x | $0 |
| 2 | $1,893 | 1.16x | $0 |
| 3 (below) | $1,642 | 0.85x | $324 |
DSCR here is gross monthly rent divided by PITIA: principal, interest, taxes, insurance and HOA. Each property's payment uses its own loan amount at the rate above. The program also needs at least 90% of units leased.
The method
- Each property: payment on its loan at the rate above (30-year amortizing or interest only), plus taxes / 12, insurance / 12 and HOA, gives its PITIA. Its DSCR is rent / PITIA.
- The portfolio: total rent / total PITIA. That is the ratio the lender tests.
- Drags: any property under 1.05x on its own is flagged, with the extra monthly rent it would need to reach 1.05x alone, and the portfolio ratio is re-run without them.
The stamp reads "All clear" when every property clears on its own, "Carried" when the portfolio clears with some weak ones inside, "Just under" between 1.00x and 1.05x, and "Rent short" below 1.00x.
One loan or several
A portfolio loan means one closing and one payment, and it lets a strong house carry a weak one. Separate DSCR loans test each property alone at 1.05x, so a property like number 3 in the example would not qualify by itself at that loan amount. Check one property in detail with the DSCR calculator, or send us the portfolio.
Questions people ask
How is DSCR calculated on a rental portfolio?
Add up the rent on every property and divide by the combined PITIA: principal, interest, taxes, insurance and HOA. In the example, $5,450 of rent against $5,102.23 of PITIA is 1.07x, which clears the 1.05x portfolio minimum.
Can one weak property sink a portfolio loan?
Not by itself. A blanket loan is tested on the combined ratio, so strong properties carry weak ones. Property 3 in the example covers its payment only 0.85x, but the portfolio still clears at 1.07x. Leave it out and the other two run 1.17x.
What does a portfolio loan need besides the DSCR?
On the program here: at least 1.05x on the portfolio, at least 90% of units leased, a 680 credit score, a business entity as borrower, and each property worth at least $72,000. Loans go up to $2,000,000, at up to 80% LTV on a purchase or rate-and-term refinance and 75% on cash-out.
How do I fix a property that drags the ratio down?
Three ways: more rent, a smaller loan on it, or leave it out. Property 3 needs $324 more rent a month to reach 1.05x alone ($1,641.96 × 1.05 = $1,724.06, against $1,400 now). Borrowing less on the whole portfolio lifts every ratio at once.
Numbers look right?
Send the deal. We check it against the lender's terms and come back with a loan.