To hit a DSCR of 1.25, a landlord with a $1,000 monthly mortgage needs to charge $1,250 in rent. That extra $250 covers the debt and gives the landlord actual profit instead of breaking even.
be at 25%, because if our monthly payment, let's just use round numbers. If our monthly mortgage payment's $1,000, I need to be paid $1,250 from the renter. Got it. I understand now. Okay. For this property, as a landlord, I'm paying $1,000 a month in the mortgage for the property. My renter, in order for me to cover that, needs to pay $1,250. Got it. Okay. Right. Because my renter pays my mortgage and then I need to make profit. Right. But we still have to make some money on it.
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