Eventually, if you are unable to take a loan because your DSCR is too low, you have just two alternatives. You’ll have to either put the idea on hold, wait out any existing leases, raise the rent for the next year, or accept a smaller loan amount.

Waiting and raising rent prices may make sense in the right conditions, especially if rent in the region has risen significantly and you’re confident that you’ll be able to lease the properties without risking a lengthy vacancy. However, accepting a smaller loan amount would be the easiest way forward for the most part.