There's a thing called a debt service coverage ratio, and it's the ratio of the net operating income to the debt service. In other words, banks want to know that the net active income is more than your debt service. They want it to be 1.25 more. And so that's typically a bank requirement.
If the DCR ratio is lower, the bank often requires that specific interest be paid into escrows to accommodate that difference and reduce risk. So if the DCR is 1.25, then you know that the property is cash-flowing from day one, which is good if it's not cash-flowing from day one. It's not the end of the world.
It just raises the risk level. It's not the same as multifamily syndication, where the cash flow is already positive from the debt from day one.
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