Study this one. Cap rate gets you to the price. DSCR gets you to the closing table. $10M acquisition. $620K NOI. 6.2 cap. The deal looked alive. Then the lender ran the debt service. $7M loan at 6.5% over 25 years is $567K a year. That is a 1.09 DSCR. The lender needed 1.25. To hit 1.25, the max loan drops to $6.1M. The buyer is $900K short. Add equity or lose the deal. The price never killed it. The financing did. @ed.streit #CommercialRealEstate #Underwriting #DSCR #RealEstateInvesting #CashFlow