Good DSCR. But is it good cash flow?
A covered payment is a starting point
The preliminary calculator on this site divides monthly rent by refinance principal and interest only. A lender may use full PITIA. Neither calculation, by itself, tells you how much cash you will keep after all expenses.
Follow a simple example
Suppose rent is $2,600 and principal and interest are approximately $1,626. The preliminary ratio is about 1.60×. Add $350 for taxes and insurance and $50 for HOA dues: full PITIA is $2,026, and DSCR falls to about 1.28×. These are illustrative expenses.
Then account for operations
Budget separately for vacancy, management, maintenance, and capital replacements. An illustrative $130 vacancy allowance, $208 management fee, $130 maintenance allowance, and $130 replacement reserve total $598 monthly. After $2,026 PITIA and $598 operating allowances, the $2,600 rent leaves negative $24. Avoid counting taxes or insurance twice.
Measure the return you actually want
Estimate before-tax cash flow across a full year and divide it by cash left in the deal to assess cash-on-cash return. Use realistic rent, honest operating costs, and a vacancy stress test. Better leverage does not automatically produce a better investment.