Even though the title of this blog post is DSCR (Debt Service Coverage Ratio), we will use this opportunity to explain both DSCR and DTI (Debt To Income Ratio), as they are both important concepts around debt financing calculations. First, let’s check out the formula for DSCR: DSCR = NOI / Total Debt Service We…
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Turnkey Property Investing
If your investment strategy is to be passive, investing in Turnkey Properties is definitely a good method to consider. Until now, the concept of “turnkey property” is still very loosely-defined to something as, “a property that is already rehabbed, has a tenant placed, and cash-flowing.” There are a lot of so-called “turnkey providers” out there,…
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CAP Rate – Capitalization Rate
CAP Rate is one of the most important indicators, if not the most important indicator, for real estate investors to evaluate deals. What CAP Rate gives us is an unbiased view when comparing properties side-by-side. To begin, let’s start off with the formula: CAP Rate = NOI / Property Price As you can see, the…
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Real Estate Investing as Bird Dog
Bird Dog is an important role in the world of real estate investing. A bird dog is responsible to look for motivated sellers, undervalued deals, and/or local opportunities… etc., even do some initial due diligence, and then turn around and present the deals to potential investors, in exchange for a “finder’s fee.” Here is the…
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Single Family vs. Multi Family
The traditional way of investing in real estate is through single family. In fact, at DoorInvestor, we all have gone through this path of investing at some point in our investment life: Save up for down payment Buy a house and finance with a mortgage Rent the house out and manage the property and tenant…
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How to Short Sale
In the real estate world, Short Sale means the bank is willing to sell a property to a buyer at a price less than the outstanding mortgage balance. This means the bank will need to write off the remaining balance and call it even. When deployed properly, this can be a very powerful strategy for…
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NOI – Net Operating Income
There are several commonly-used metrics that a real estate investor uses to analyze the potential of any given opportunity. We will start with some basics and then gradually move into some of the more advance concepts. To begin the series, we will talk about Net Operating Income. Net Operating Income, or NOI for short, is…