DSCR Deal Analysis Spreadsheet Walkthrough

A well-built spreadsheet is the difference between guessing and knowing whether a deal works. Most investors either overcomplicate their analysis with 47 tabs or oversimplify it with back-of-napkin math that misses critical expenses.

This walkthrough shows you exactly how to build a DSCR deal analysis spreadsheet that's thorough enough to catch bad deals and simple enough to use in under 15 minutes.

Section 1: Property Inputs

The top of your spreadsheet should capture the basics:

• Property address — For reference and comp pulling
• Purchase price — Asking price or your offer amount
• After-repair value (ARV) — If doing value-add, what's it worth renovated?
• Renovation budget — Include materials, labor, and a 15% contingency
• Property type — SFR, duplex, triplex, fourplex, 5+ units
• Year built — Older properties need higher maintenance reserves
• Square footage — Total livable area
• Bedrooms / bathrooms — Per unit if multifamily
• Lot size — Relevant for future ADU potential

Pro Tip: Color Coding

Use three colors throughout your spreadsheet:

• Blue cells — User inputs (things you type in)
• Green cells — Calculated results (formulas)
• Red cells — Warning flags (when numbers fall below thresholds)

This makes it immediately obvious what to fill in versus what's auto-calculated.

Section 2: Financing Assumptions

This is where DSCR-specific inputs go:

• Down payment percentage — Typically 20–25% for DSCR loans (as of early 2026)
• Down payment amount — Auto-calculated from price × percentage
• Loan amount — Purchase price minus down payment
• Interest rate — Current DSCR rates range from 7.0% to 8.5% depending on DSCR ratio, LTV, and credit score
• Loan term — Usually 30 years, but model 25-year and interest-only options too
• Interest-only period — Some DSCR loans offer 5–10 years IO
• Closing costs — Estimate 2–4% of loan amount
• Prepayment penalty — Common in DSCR loans: 5-4-3-2-1 or 3-2-1 step-down structures

Monthly Payment Formula

For a standard amortizing loan:

Monthly P&I = Loan Amount × [r(1+r)^n] / [(1+r)^n – 1]

Where r = monthly rate (annual rate ÷ 12) and n = total payments (term × 12).

In Excel or Google Sheets, use: =PMT(rate/12, term*12, -loan_amount)

For interest-only: =loan_amount * rate / 12

Section 3: Income Analysis

Long-Term Rental Income

• Market rent per unit — Pull from Rentometer, Zillow, and active comps
• Number of units — 1 for SFR, 2–4 for small multifamily
• Gross monthly rent — Sum of all unit rents
• Other income — Laundry, parking, storage, pet fees, late fees
• Gross monthly income — Rent + other income
• Annual gross income — Monthly × 12

Short-Term Rental Income (if applicable)

• Average daily rate (ADR) — From AirDNA or Mashvisor
• Projected occupancy — Use 60–70% for conservative numbers
• Gross STR revenue — ADR × 365 × occupancy
• Platform fees — Airbnb takes 3%, VRBO varies
• Cleaning costs — Per turnover, multiplied by estimated turns
• Supplies/consumables — Monthly estimate
• Net STR income — After all STR-specific costs

Which Rent Figure to Use for DSCR

Most DSCR lenders use one of these methods:

1. 1007 Rent Schedule — Appraiser's market rent opinion (most common)
2. Existing lease — If the property has a current lease in place
3. AirDNA projections — For STR properties, some lenders accept these at 75% of projected income

Your spreadsheet should model the conservative estimate — what the appraiser will likely assign, not your optimistic projection.

Section 4: Expense Breakdown

Fixed Monthly Expenses

Variable Monthly Expenses

Annual One-Time Costs

• Turnover costs — $1,500–$3,000 per unit per turn
• Accounting/tax prep — $300–$800 for rental property returns
• LLC maintenance — $50–$800 depending on state
• Landlord insurance deductible — Keep in reserve ($1,000–$5,000)

Section 5: The DSCR Calculation

This is the heart of the spreadsheet:

DSCR = Gross Monthly Rental Income ÷ Total Monthly PITIA

Build it as a prominent, auto-calculated cell. Add conditional formatting:

• Green (1.25+) — Strong deal, best rate pricing from lenders
• Yellow (1.0–1.24) — Acceptable but thin margin
• Red (below 1.0) — Most lenders won't approve; deal needs rework

DSCR Tiers and Rate Impact

Show a reference table in your spreadsheet:

Section 6: Return Metrics

Cash-on-Cash Return

Annual net cash flow ÷ Total cash invested × 100

Total cash invested includes:

• Down payment
• Closing costs
• Renovation costs (if any)
• Initial reserves funded

Target: 6–10% for buy-and-hold DSCR deals (as of early 2026).

Cap Rate

Net Operating Income (NOI) ÷ Purchase Price × 100

NOI = Gross income – operating expenses (excluding debt service)

Cap rate tells you the property's return independent of financing. Useful for comparing deals.

Total Return (Year 1)

Combine four sources of return:

1. Cash flow — Monthly net income after all expenses
2. Principal paydown — Equity gained through mortgage amortization
3. Appreciation — Conservative 2–3% annual estimate
4. Tax benefits — Depreciation, interest deduction, pass-through deduction

Internal Rate of Return (IRR)

For advanced users, add a 5-year and 10-year IRR calculation assuming a sale at projected value. Use Excel's =IRR() function with annual cash flows plus sale proceeds in the final year.

Section 7: Sensitivity Analysis Tab

This is what separates amateur from professional underwriting. Build a data table that shows:

Rent Sensitivity

Rate Sensitivity

Same table structure but varying the interest rate from current rate -1% to +2%.

Vacancy Sensitivity

Show impact of 5%, 10%, 15%, and 20% vacancy on all key metrics.

In Google Sheets, use the =DATA.TABLE() equivalent by creating linked formulas. In Excel, use Data Tables (What-If Analysis).

Common Spreadsheet Mistakes

• Forgetting property tax reassessment — Taxes often jump 20–50% after purchase
• Using seller's insurance quote — Get your own quotes; investor insurance costs more
• Ignoring CapEx — That 20-year-old roof will need replacing
• Using gross rent for cash flow — Always subtract vacancy, PM, and maintenance
• Not modeling the prepayment penalty — DSCR loans typically have 3–5 year PPPs
• Mixing up DSCR and cash flow — A 1.25 DSCR doesn't mean positive cash flow after all expenses

Frequently Asked Questions

Should I use Google Sheets or Excel?

Google Sheets for collaboration and accessibility from anywhere. Excel for advanced features like data tables and complex modeling. Both work fine for DSCR analysis.

How often should I update my spreadsheet template?

Update rate assumptions quarterly as DSCR rates shift. Update expense percentages annually. Update the template structure whenever you find a gap in your analysis.

Can I use this for multifamily properties?

Yes. For 2–4 units, input each unit's rent separately and sum for gross income. For 5+ units, add a per-unit expense model and commercial metrics like price per unit and price per square foot.

What's the most important number in the spreadsheet?

The DSCR ratio determines whether you get financing. But cash-on-cash return determines whether the deal is actually worth your capital. Both matter equally.

Should I include appreciation in my analysis?

Model it separately as a bonus return, never as a requirement. If your deal only works because of appreciation, it's speculation, not investing.

The Bottom Line

A DSCR deal analysis spreadsheet doesn't need to be complicated — it needs to be complete. Cover property inputs, financing terms, income analysis, expense breakdown, DSCR calculation, return metrics, and sensitivity analysis. Build it once, use it hundreds of times.

The spreadsheet protects you from your own optimism. When the numbers are laid out clearly, bad deals reveal themselves — and good deals become obvious.

Looking to run DSCR numbers on a specific property? HonestCasa's DSCR calculator can give you quick rate estimates to plug into your analysis.