Institutional Real Estate Investor Strategies & DSCR Playbooks
Every strategy below pairs a dedicated quantitative underwriting workbench with wholesale DSCR, RTL bridge, or commercial multifamily credit-box execution.
BRRRR Method
The BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat) pairs short-term RTL bridge acquisition debt (up to 90% LTC / 100% rehab draws) with a 30-year fixed DSCR cash-out refinance at 75% of new appraised After-Repair Value (ARV) once rehab is complete and the 90–180 day title seasoning window is satisfied.
Short-Term Rental (STR)
Short-Term Rental (STR) DSCR underwriting qualifies Airbnb and VRBO properties using either a 12-month historical platform payout ledger or Day-1 AirDNA Rentalizer projections (at 60th–75th percentile occupancy with a 10%–20% underwriting haircut) without personal DTI.
PadSplit Co-Living
By-the-bed co-living (PadSplit, Alcove, Bungalow) converts oversized 4–8 bedroom single-family homes into workforce rooming residences generating 1.8x–2.4x conventional Form 1007 single-family market rent while qualifying on standard 1–4 unit DSCR credit boxes.
1031 Exchange DSCR
Combining an IRC § 1031 tax-deferred exchange with non-recourse or LLC-vested DSCR debt allows investors to defer 100% of federal/state capital gains and 25% depreciation recapture while replacing equal-or-greater debt across 1–4 unit bundles or 5–25 unit multifamily replacement properties without DTI bottlenecks.
Blanket Portfolio DSCR
Blanket Portfolio DSCR loans consolidate 3 to 50+ single-family rentals, townhomes, or 2–4 unit properties into one cross-collateralized 30-year fixed or 5/7/10-year hybrid note with an aggregate portfolio DSCR calculation and a 110%–120% partial release clause.
Cost Seg & Bonus Depreciation
Because IRS depreciable basis equals total purchase price plus capital improvements regardless of LTV (Crane v. Commissioner), acquiring rental real estate with 75%–80% DSCR leverage and commissioning an engineering-based Cost Segregation study reclassifies 22%–32% of building basis into 5-, 7-, and 15-year MACRS property for accelerated Year-1 tax deductions.