Loan Strategy

DSCR vs. Fix-and-Flip vs. Construction Financing

Choose an investor loan path based on property condition, business plan, timeline, and exit.

Use the property’s current condition and intended exit to choose the starting lane: DSCR for stabilized rentals, fix-and-flip for acquisition plus rehab, and ground-up construction for eligible new vertical builds. A project may move between lanes as it reaches milestones.

Stabilized rental

DSCR is generally designed for rent-ready or leased property that supports long-term debt. Material rehab may require a short-term product first.

Existing property with renovation

Fix-and-flip or bridge financing can fund acquisition and approved improvements. The exit may be sale or refinance, subject to takeout requirements.

New vertical build

Ground-up programs focus on land and permit readiness, builder experience, budget, contingency, draws, and the completed-value or rental exit.

What to do next

Use the numbers and documents from this guide to prepare a complete scenario. Final eligibility and terms depend on the lender’s current program, underwriting, property, borrower, business, and state.