The numbers · Deal analyzer
Same three numbers every lender runs.
Change one input and watch which year of the roadmap this deal actually belongs to.
Inputs
Purchase price$385,000
Down payment25%
Interest rate6.8%
Monthly rent$3,200
Monthly operating cost$1,150
30-year amortization · closing costs at 3% of price · vacancy already inside operating expenses.
Cash-on-cash
1.9%
On $107,800 of cash in, including closing costs.
DSCR
1.09
Most lenders stop reading below 1.20.
Cap rate
6.39%
Unlevered — the only number the market agrees on.
The verdict
A lender will not touch this, and neither should you. At 1.09 coverage you are subsidising a tenant out of your salary.
Loan amount$288,750
Monthly P&I$1,882
Annual NOI$24,600
Annual cash flow$2,011
Email yourself this scenario
Plus the two pieces at this stage that argue with the result.