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Debt Service Coverage Ratio (DSCR)

Are you a first time real estate investor?
Use our glossary to get to know the terms used in the real estate investing industry.

WHAT IS A DEBT SERVICE COVERAGE RATIO (DSCR)?

A debt service coverage ratio (DSCR) measures the ability of a real estate property owner to cover its debt payments (both interest and principal) with the rent it brings in from its property. The rent is called net operating income (NOI)

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