The concepts behind the tools
Short, plain-language explainers so the numbers mean something. None of this is advice — it's the vocabulary that makes a lender conversation more productive.
DSCR — debt service coverage ratio
The relationship between a property's income and its loan payment. A DSCR of 1.0 means income exactly covers the payment; above 1.0 leaves a cushion; below 1.0 means the payment isn't fully covered by the property's income. Lenders differ on whether they use full net operating income or a simpler gross-rent-to-PITIA ratio. See the DSCR Calculator.
NOI — net operating income
Effective gross income minus operating expenses (taxes, insurance, HOA, management, maintenance, utilities, and other operating costs). By convention it excludes your loan payment and capital reserves, so it describes the property's economics independent of how you finance it.
Cash-on-cash return
Annual pre-tax cash flow divided by the cash you actually put in (down payment, closing costs, and initial repairs). It answers "what yearly cash return am I getting on the money I invested?" Explore it in the Rental Cash-Flow Calculator.
Break-even occupancy
The share of scheduled rent you must actually collect to cover operating expenses, debt service, and reserves. A break-even near 95% leaves little room for vacancy; a lower break-even is more resilient.
Debt yield
Net operating income divided by the loan amount. Common in commercial and multifamily underwriting because, unlike DSCR, it doesn't depend on the interest rate or amortization — it measures the lender's income cushion directly.
Bridge mechanics
Available equity is a departing home's value minus its mortgage. A bridge's cost is roughly interest for the holding period plus fees. The break-even sale price is where net sale proceeds repay the existing mortgage plus the bridge and its costs. Model it in the Bridge Calculator.
Documentation methods
Self-employed income can be shown different ways: full-documentation (tax returns), bank-statement (deposits), profit-and-loss, or directly from 1099s. Each treats deductions differently, so the same borrower can look different under each. The Self-Employed Explorer helps you map which may fit.