DSCR Question
I’m a long ways off from any kind of serious investing, so I’m just casually looking and learning. But just had a basic question regarding buying multi family units. I’ll fortunately be in a position soon where I’ll have the capital to make some decent sized investments, but even just casually looking on sites like loopnet or Zillow, how does anyone make money doing this? Almost every single property I saw had a higher mortgage than NOI (from my limited understanding, this would mean DSCR &lt;1, which I understood to be bad). Even if I could buy a multi family unit outright, am I just supposed to wait 10-15+ years before I start seeing an actually return on investment?
[{"id": "g0oyifr", "text": "Without more details, there really isn\u2019t much anyone can do to help your predicament. \n\nYes, CRE loans are financed based on the lesser of 1.) Maximum LTV and 2.) Minimum DSCR.", "replies": [], "depth": 1}]