Five properties to twenty. Same broker. Same phone number.
Your Schedule E shows losses that aren't real losses. I add back the depreciation, normalize the vacancy, and show the lender your portfolio actually cash flows.
Overview
Your tax returns show rental losses. Lenders see that and say no. But those "losses" are mostly depreciation. A non-cash deduction that reduces taxable income without reducing actual cash flow. Your properties generate money every month. The tax return just doesn't show it.
I read Schedule E the way it's supposed to be read. Add back depreciation. Normalize vacancy. Present the real cash flow. If conventional maxes out because you've hit the financed property cap, DSCR has no limit and the property qualifies on its own income.
Each deal gets the same attention. I don't hand you off to someone else when you call about property twelve. Same process, same phone number, same person who knows your portfolio.
What I Look For
How I Handle This
Each acquisition assessed individually. Where you stand on property count, DTI, and available programs. If conventional works, I use it. If DSCR makes more sense, we switch. I think about the portfolio, not just the next deal.
Questions I Get
How many can I finance?
Conventional has a limit. DSCR doesn't. I transition between them as your portfolio grows.
Schedule E shows losses. Am I denied?
Not if the lender reads it right. Depreciation is non-cash. I add it back and show real cash flow. If conventional still doesn't work, DSCR qualifies the property on rental income alone.
Can I close in my LLC?
Yes, through DSCR. Conventional requires personal title.
When should I switch from conventional to DSCR?
When conventional reaches its property limit, DTI is too stretched, or the deal's rental income makes DSCR simpler. I tell you when.
Scaling your portfolio?
Send me the next deal. I'll tell you whether conventional or DSCR wins.