Question 1

What DSCR ratio do I need for a Los Angeles rental property?

Accepted Answer

Most lenders require 1.0 minimum—monthly rent covers your full payment. Some programs accept 0.75-0.85 with larger down payments and strong credit.

Question 2

Can I use projected rent if the property is vacant?

Accepted Answer

Yes. Lenders use appraisal rent schedules showing market rents for comparable properties. You don't need a tenant in place at closing.

Question 3

Do DSCR loans work for property flips in LA?

Accepted Answer

No. DSCR loans fund rental investments you plan to hold long-term. Use hard money or bridge loans for fix-and-flip projects instead.

Question 4

How many DSCR loans can I have at once?

Accepted Answer

No set limit. Lenders focus on each property's cash flow and your total reserves. You can finance multiple properties simultaneously.

Question 5

What happens if my tenant moves out after closing?

Accepted Answer

Your loan terms don't change. DSCR calculations happen at approval—vacancies after closing don't trigger lender action or payment changes.

DSCR Loans in Los Angeles: Property Cash Flow Beats W-2 Income