The 207 Cash Flow Number
Does this Maine rental actually cover itself?
The 207 Cash Flow Number is a fast, honest DSCR check for a Maine rental. Put in the price, the expected rent, and the town, and get a verdict backed by real math: the current market rate plus a stated investor increment, the town's published mil rate, and a Maine insurance baseline you can override with your real quote.
SAMPLE PASSAGE · BIDDEFORD DUPLEX
PMMS 2024-11-14 + investor 1.00% · Assessor mil rate 19.32, 2024-10
Enter the deal
No credit pull. This is not an application.Methodology
Here is exactly how DSCR is computed.
DSCR is Gross Monthly Rent divided by Full Property Expenses. Full Property Expenses on this tool are Principal, Interest, Taxes, Insurance, and any monthly Association dues. Principal and Interest use a standard 30-year amortization. Taxes come from the selected town's most recent published mil rate. Insurance defaults to a Maine baseline and is editable so you can plug your real quote. Association dues default to zero and are editable.
The rate assumption starts from the current Freddie Mac PMMS 30-year fixed weekly average and adds a stated investor increment to reflect typical DSCR pricing. That is an illustration only; your actual rate on a real file depends on your credit, reserves, LTV, property type, and the specific lender.
Verdicts.
A DSCR of 1.25 and above is Strong. Between 1.00 and 1.24 is Workable. Below 1.00 is Needs Structure, which usually means a bigger down payment, a different property, or a different loan program.
What this tool does not do.
It does not include vacancy, maintenance, capital expenditure reserves, or property management fees. Those matter for a real underwriting of your return on capital, but DSCR is a loan-qualification metric, not a return calculation. Travis walks through the real-life picture when you talk.
Sources.
Freddie Mac PMMS 30-year fixed weekly, freddiemac.com/pmms. Town mil rates from each municipality's annual tax commitment via Maine Revenue Services Property Tax Division. Investor rate increment is a stated illustration, not a quote.
How investors use this
Screen properties before you write an offer.
Investors who close on Maine rentals typically screen dozens of listings before writing an offer. Running this calculator on a listing takes about a minute. If DSCR comes back Strong, keep the property in the funnel. If it comes back Workable, ask whether the rent estimate is conservative and whether you would accept a lower cash return. If it comes back Needs Structure, either the price is too high, the rent is too low, or the property is not a fit for a DSCR loan at this LTV.
The tool also helps you play with structure. Bump the down payment from 20 percent to 25 percent and see how DSCR moves. Try a different town with a lower mil rate and see what happens to the monthly taxes. Try a stronger insurance quote from an independent agent and watch the verdict shift. This is the exact same math Travis runs when a real file lands on his desk.
FAQ
Investor questions Travis answers weekly.
What is a DSCR loan?
A Debt Service Coverage Ratio loan qualifies on the property's rent, not on the borrower's personal income. DSCR is rent divided by full PITI (plus HOA). At 1.00 the property breaks even on the loan; at 1.25+ pricing gets better and more lenders play.
Do DSCR loans require tax returns?
Usually no. That is the whole point. Qualification runs on the property's rent and the borrower's credit and reserves. It is popular with self-employed investors, high-write-off W-2 earners, and buyers scaling a portfolio.
What DSCR do lenders want?
1.00 is the common floor. 1.10 to 1.20 gets standard pricing. 1.25 and above unlocks the best rates and lowest reserves. Some lenders will go to 0.75 with a larger down payment and stronger credit; pricing pays for it.
Can I buy a rental property in Maine from out of state?
Yes. DSCR loans do not require you to live in the same state as the property. Most Maine DSCR files close for out-of-state investors targeting Portland, Biddeford, Lewiston, and Bangor multifamily.
What down payment do you need for a DSCR loan?
Typical is 20 to 25 percent down. Some programs go to 15 percent for strong DSCR and credit; lower down payments carry higher rates and tighter terms.
Can DSCR loans use Airbnb income?
Some programs credit projected or documented short-term rental income (Airbnb, VRBO) instead of long-term market rent. Underwriting rules vary widely; documented STR history is worth more than projected numbers.
Can you close a DSCR loan in an LLC?
Yes. Most DSCR lenders prefer or require an LLC on title. Personal guarantees are still standard, so LLC use is a tax and asset-protection choice, not a credit shortcut.
What's the difference between a DSCR loan and a conventional investment loan?
Conventional investor loans qualify on personal income (tax returns, DTI, reserves) at conforming pricing. DSCR loans qualify on the property's rent at non-QM pricing, which is typically 0.75 to 1.50 percent higher but skips personal income underwriting.
Market averages shown are sourced from the named indices and updated on their published schedule. These are market averages, not an offer or commitment to lend, and not a rate available to you. Your actual rate and payment depend on your credit score, down payment, qualifying income, loan type, loan amount, property type and occupancy, loan-to-value, points, and market conditions at lock. Rates change daily and are subject to change without notice. Figures are estimates for illustration only and do not constitute loan approval, a rate lock, or a guarantee. Travis Penny | NMLS #1649161 | Equal Housing Opportunity | nmlsconsumeraccess.org