Question concerning cashflow. - Posted by yshNJ

Posted by Ronald * Starr(in No CA) on September 08, 2003 at 16:44:15:

YSH–(NJ)-----------------

It is not used for single family houses. It is used for commerical loans on apartments and commercial properties. You might look on the commerical board forum for discussion of it.

Good InvestingRon Starr*********

Question concerning cashflow. - Posted by yshNJ

Posted by yshNJ on September 08, 2003 at 14:28:04:

I’m just wondering who uses DCR (Debt Coverage Ratio) extensively when determining how good an income producing property is. I’ve heard somewhere that a DCR of 1.25 means that the property will be able to effectively cashflow, but I’ve seen little mention of the term in the archives. Who uses this and what is an acceptable DCR for you? Thanks much.

Re: Question concerning cashflow. - Posted by M. Martin

Posted by M. Martin on September 09, 2003 at 21:14:03:

I have it built into my APOD spreadsheet along with GRM and cap rate. I do mostly 2 to 4 family section 8 rentals and keep DCR to 1.2 as a minimum and target for 1.4.