Building DSCR calculator for 5-10 unit apartments
TL;DR: Enter the building’s total in-place rent, its taxes, insurance and dues, and the loan you are considering. The calculator shows coverage (rent divided by the full payment) and a second ratio based on net operating income, which many small multifamily lenders also check. No contact details needed, and nothing is stored.
The building
The proposed loan
This calculator is an estimating tool, not an underwriting decision, and it does not include every lender fee or program adjustment. Wholesale lenders count income and expenses differently. Nothing here is an offer to lend.
Total rent divided by principal, interest, taxes, insurance and dues.
How to use it on a 5-10 unit building
Start with the rent roll, not the listing. Add up the rent each tenant pays under a current lease and leave vacant units at zero. If several tenants are long-term at regulated rents, that is the number a lender will count, even if you expect the rent roll to rise as units turn over.
For taxes, use your own estimate after Proposition 13 reassessment at your purchase price, plus every special district charge on the parcel bill. For insurance, use a written quote. For the optional owner-paid costs line, add water, sewer, trash, common-area electricity, repairs and a management allowance. That line feeds the second ratio only.
Two ratios, and why
The first ratio divides rent by principal, interest, taxes, insurance and dues. Many DSCR-style programs use it. The second divides net operating income (rent minus taxes, insurance, dues and other owner-paid costs) by principal and interest, which is closer to how small-balance commercial lenders look at a building. A building can look comfortable on the first and tight on the second, especially if it is master-metered.
The rate field is blank because we do not publish or default a rate. Each wholesale lender sets its own minimum coverage, and it can change with unit count, condition and loan size. That is why the same arithmetic can fit one program and miss another.
Send us the building, not just the borrower
Address, unit count, a current rent roll and the loan you have in mind. We read it the way a 5-10 unit underwriter will and tell you which wholesale programs are worth the appraisal.