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Alpha Realty Loans
Smart real estate investing starts with the right numbers
At Alpha Realty Loans, we make it easy for investors to evaluate rental and commercial properties with confidence. Our Mortgage Calculator delivers clear insights into monthly and annual cash flow, DSCR (Debt Service Coverage Ratio), and cash-on-cash return—the essential metrics that help you identify strong investment opportunities. Whether you're financing a single-family rental or a multi-unit commercial building, Alpha Realty Loans gives you the tools to make smarter, more profitable real estate decisions.
What Does DSCR ≥ 1.25 Mean?
DSCR stands for Debt Service Coverage Ratio. It tells lenders whether a property’s income can comfortably cover its loan payments.. A DSCR of 1.25 means the property generates 25% more income than the loan payment requires. This is a common minimum threshold for most commercial lenders. The higher the DSCR, the lower the risk, which can improve your chances of loan approval or get you better terms.
Why Cash-on-Cash Return Matters
Cash-on-cash return measures how much profit you’re making on your actual cash invested—not just the property value. If you invested $100K and earn $10K annually, that’s a 10% cash-on-cash return. It’s a key metric for comparing different deals or deciding whether a purchase makes sense. Lenders and investors alike use this to assess true ROI on leveraged deals
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