Title: $85,000 DSCR Improvement Tagline: $85,000 DSCR Improvement: How the Millers Secured a Second Rental Property Despite Rising Interest Rates Problem: The Millers, a couple in their early 40s with three children nearing college age and a combined income of $450,000, sought to purchase a second rental property. Their current mortgage, existing student loan debt, and upcoming college expenses created a tight financial situation. Rising interest rates made qualifying for another mortgage challenging, as lenders were hesitant to approve loans with borderline Debt Service Coverage Ratios. They needed to demonstrate they could comfortably cover the debt service on the new property without jeopardizing their existing financial obligations. Solution: Using the Golden Door Asset Debt Service Coverage Ratio Calculator, the Millers meticulously analyzed their existing income and expenses, factoring in potential rental income from the new property. They then explored strategies to improve their DSCR, including refinancing their existing mortgage for a lower interest rate and restructuring some of their student loan debt to lower monthly payments. By understanding the impact of these changes on their DSCR, they could confidently approach lenders with a compelling financial picture. Furthermore, they leveraged the Time Interest Earned Ratio calculator to demonstrate their ability to cover all interest expenses, adding another layer of security for lenders. ROI: By refinancing their mortgage, the Millers reduced their monthly payments by $1,200, increasing their annual net operating income by $14,400. Restructuring their student loans saved them an additional $300 per month, adding another $3,600 annually. This, combined with the projected rental income from the new property, improved their DSCR from 1.1 to 1.35, an improvement of over 22%. This improvement meant that the bank was much more likely to loan them the money, which in turn meant they could purchase the new rental property that generated $67,000 per year. This $67,000, plus $14,400 plus $3,600, means the DSCR improvements led to a direct increase in investment income of $85,000 per year. Description: Unlock your investment potential with our DSCR calculator – see how strategic debt management can open doors to new income streams. Optimize your Debt Service Coverage Ratio and expand your portfolio confidently. Category: Lead Gen