To calculate DSCR, use this simple formula:
DSCR = Rent / PITIA
A debt-service coverage ratio of 1 indicates that the monthly expenses of a subject property are equal to the monthly payment. For instance, if your monthly expenses are $1,800 per month and a tenant pays you $1,800 per month, you are breaking even. There are some simple ways to optimize the DSCR calculation:
There are many qualities that make Georgia attractive to investors, according to Roofstock. A growing economy, booming job market, high quality of life, and affordability are just some of the many appealing factors. In terms of the rental market, Georgia rents are increasing anywhere from 3-14% year-over-year, and 36% of the state’s housing units are renter-occupied, with single-family homes accounting for the largest share of housing units.
Atlanta is the number one city where we originate DSCR loans, and Roofstock highlights its investability. The state's capital is also its largest metropolitan area with 6.1 million people. And the rental market is thriving. 36% of housing units in Atlanta are occupied by renters with single family homes being the largest share of property types. The median rental income on a three-bedroom home is $1900 per month, and the rents historically have increased anywhere from 3-14% year-over-year. It's no wonder Visio finances so many Atlanta properties.
For investors looking to purchase rental properties in Georgia, here’s where Mashvisor recommends looking in addition to Atlanta:
Check out some of our recently closed DSCR loans in Georgia.