DSCR Property Qualification Checklist
Screen the property like a DSCR desk — then write the offer.
A gated pre-offer checklist for Canadians buying 1–4 unit (and some small multifamily) US rentals on debt-service coverage, including entity/identity and the NOI → PITIA worksheet.
Do not underwrite the listing
The checklist forces lease or market rent, not the seller’s pro forma.
Canadians are not a US W-2 story
LLC, ITIN/SSN plan, and US banking are on the list because DSCR desks still need a borrower path.
Target ratio in writing
≥1.0 is the floor; 1.1–1.25+ is what many lenders actually close.
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Confirm target market (US state, landlord laws, insurance availability)
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Run DSCR with realistic rent (lease or market study — not listing pro forma only)
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Model all-in expenses: taxes, insurance, HOA, management, maintenance, vacancy
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Target DSCR ≥ 1.0 (many lenders prefer 1.1–1.25+)
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Confirm down payment (typically 20–25%+) and closing cost reserve
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LLC or entity structure reviewed with cross-border accountant
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US bank account pathway identified
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ITIN or SSN plan documented if required by lender
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Canadian credit report available; US credit strategy if applicable
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Purchase agreement or LOI
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Rent roll or lease(s) (STR: platform trailing 12 months if allowed)
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Property tax bill and insurance quote
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HOA/condo docs if applicable
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Appraisal ordered per lender timeline
Fill these lines on the printable file: Gross rent → vacancy → EGI → expenses → NOI → PITIA → DSCR = NOI ÷ PITIA.
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Gross rent (or market rent)
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Less: vacancy (%)
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Effective gross income
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Less: taxes, insurance, HOA, management, maintenance
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Net operating income (NOI)
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PITIA (principal, interest, taxes, ins, HOA)
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DSCR = NOI ÷ PITIA
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Government ID and proof of assets for down payment
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Entity documents (Operating Agreement, EIN letter)
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Schedule of real estate owned (if any)
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Letter of explanation for credit events (if any)
- Do I need US tax returns for DSCR?
- Usually no — that is the point of DSCR. You still need ID, assets for down payment, and often an entity.
- What is PITIA?
- Principal, interest, taxes, insurance, and HOA/condo. DSCR is NOI ÷ PITIA on this worksheet.
Email to download
Name and email. We send the file and can follow up on the matching desk.