Evaluating Multifamily Buildings
Where Should I Invest? Real Estate Investing in Canada
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Cap Rates and Debt Service Coverage Ratio
The most important metric right now is debt service coverage ratio DSCR in the it's the cushion that the banks are willing to lend you. People get really fixated on cap rate when it's your debt coverage ratio should be the one you're focusing on right now. If you don't have that net operating income, especially if you took out high equity amounts at cheaper rates. The real kicker is when people are going to renew their mortgages on multifamily they really hold your feet to the fire.
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