Cash-Flow Worksheet: Analyze DSCR on Multi-Family Assets Over $2M

In multi-family real estate investing, understanding your property’s financial health is critical—especially for assets valued over $2 million. One of the most essential metrics investors, lenders, and analysts monitor is the Debt-Service Coverage Ratio (DSCR). In this article, we’ll walk through how to use a cash-flow worksheet to calculate and analyze DSCR, assess investment performance, and strengthen your underwriting strategies.

What Is DSCR and Why It Matters in Multi-Family Investing

DSCR (Debt-Service Coverage Ratio) is a financial ratio that compares a property’s Net Operating Income (NOI) to its total debt service (principal + interest payments). It’s a crucial indicator for:

• Lenders to assess loan risk
  
• Investors to evaluate income stability
  
• Owners to monitor portfolio health
  

Formula:

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DSCR = Net Operating Income / Total Debt Service

A DSCR > 1.0 means the property generates more income than its debt obligations. Lenders typically require a minimum DSCR of 1.20–1.25 for multi-family loans over $2M.

Why Use a Cash-Flow Worksheet

A cash-flow worksheet is a powerful analytical tool that helps you:

• Calculate and track monthly/annual NOI
  
• Itemize income and operating expenses
  
• Project loan payments
  
• Run DSCR scenarios based on rent changes, vacancy rates, or refinancing terms
  

For multi-family assets over $2M, the added complexity of managing larger portfolios, multiple units, and variable expense structures demands a detailed and dynamic worksheet.

Download our customizable DSCR Cash-Flow Worksheet here.

How to Build a DSCR Analysis in Your Cash-Flow Worksheet

1. Input Income Sources

Break down gross scheduled rent, other income (laundry, parking), and vacancy loss.

2. Operating Expenses

List all recurring and anticipated expenses:

• Property management
  
• Repairs and maintenance
  
• Utilities
  
• Insurance
  
• Property taxes
  
• Replacement reserves
  

3. Net Operating Income (NOI) Calculation

Subtract operating expenses from gross income. This yields your NOI.

4. Loan Terms & Debt Service

Input your:

• Loan amount
  
• Interest rate
  
• Amortization period
  

Then calculate monthly and annual debt service (principal + interest).

5. Compute DSCR

Finally, apply the DSCR formula using your calculated NOI and debt service total.

Need help structuring your underwriting process? Schedule a consultation with our investment analysts.

Best Practices for Multi-Family DSCR Analysis Over $2M

Stress-Test Assumptions

Model worst-case scenarios like increased vacancy, higher interest rates, or operating expense growth.

Use Dynamic Formulas

Link values using Excel/Sheets formulas so that changes auto-update your DSCR projections.

Monthly vs Annual Views

Track monthly performance to catch red flags early, while maintaining an annual view for big-picture decisions.

Real-World Example

A multi-family property with:

• $350,000 NOI
  
• $270,000 annual debt service
  

DSCR = $350,000 / $270,000 = 1.30

Lender-ready, above most financing minimums.

Now assume a 15% NOI drop due to vacancies: $297,500 / $270,000 = 1.10 → Increased risk.

Internal Links for Further Reading

• How to Build a Winning Multi-Family Investment Strategy
  
• DSCR Loans: What Real Estate Investors Should Know
  
• The Role of NOI in Real Estate Valuation
  

Frequently Asked Questions

Read Next

If you found this article helpful, you’ll want to explore these:

• Top DSCR Loan Programs in 2025: Rates, Terms & Lender Comparisons
• DSCR Loan Requirements by State: What You Need to Qualify in All 50 States
  

Ready to analyze your next $2M+ acquisition? Start with our free multi-family cash flow model today.