DSCR Loan Post-Closing Action Plan: Your First 90 Days

DSCR Loan Post-Closing Action Plan: Your First 90 Days

You've closed on your DSCR loan — congratulations. Now the real work begins. The first 90 days of ownership set the foundation for your property's long-term performance. Here's your action plan.

Week 1: Secure and Set Up

Property Security

• Change all locks (even if tenants are in place, provide new keys)
• Test and activate security systems
• Verify smoke detectors and CO detectors are functional
• Document the property's condition with photos/video (baseline for future reference)

Utilities and Accounts

• Transfer utilities to your name (or your LLC) for common areas
• Set up a separate bank account for the property (critical for entity protection)
• Register with the local municipality for landlord licensing (if required)
• Activate property management software (Buildium, AppFolio, Stessa, or similar)

Tenant Communication (Occupied Properties)

• Send formal introduction letter with:
  • New ownership notification
  • Updated payment instructions (where/how to pay rent)
  • Emergency contact information
  • Property management contact (if applicable)
• Collect and verify security deposit documentation from the seller
• Review existing leases for any issues or upcoming renewals

Weeks 2-4: Optimize Operations

Property Management Setup

If using a property manager:

• Finalize the management agreement
• Provide copies of leases, tenant contacts, and property documentation
• Establish communication preferences and reporting schedule
• Confirm their handling of maintenance requests, rent collection, and tenant placement

If self-managing:

• Set up rent collection (Zelle, Venmo, online portal — avoid cash)
• Establish a maintenance request system
• Build a vendor list (plumber, electrician, HVAC, handyman, cleaning)
• Create an emergency response plan

Financial Setup

• Set up bookkeeping for the property
• Track all income and expenses from day one
• Set aside reserves: 5-8% of gross rent for maintenance, 5% for vacancy, 5% for CapEx
• Verify your first mortgage payment date and set up autopay

Vacant Property Actions

If the property is vacant:

• Complete any needed repairs or improvements
• Professional cleaning
• Professional photos for listing
• Price the rental competitively
• List on Zillow, Apartments.com, Facebook Marketplace, and local MLS
• Begin showing to prospective tenants

Month 2: Stabilize and Monitor

Rent Collection

• Confirm first month's rent is collected on time
• Establish late fee policies and communicate them clearly
• Document any payment issues immediately

Maintenance Response

• Address any initial maintenance requests promptly (first impressions matter)
• Identify any deferred maintenance the inspection may have missed
• Prioritize safety and habitability issues
• Schedule seasonal maintenance (HVAC service, gutter cleaning, etc.)

Insurance Review

• Confirm coverage is adequate after seeing the property's actual condition
• Verify tenant renter's insurance is in place (if required by lease)
• Get umbrella insurance quotes if you don't already have coverage

Financial Tracking

• Reconcile first month's income and expenses
• Compare actual performance to your pro forma projections
• Adjust budget if needed (higher/lower than expected expenses)

Month 3: Evaluate and Plan

Performance Assessment

• Calculate actual DSCR based on real income and expenses
• Compare to the projected DSCR from your loan application
• Identify any gaps between projections and reality

Lease Review

• If month-to-month tenants, consider transitioning to 12-month leases
• Evaluate if current rents are at market rate
• Plan for upcoming lease renewals

Tax Preparation

• Ensure all expenses are documented and categorized
• Consult with a CPA about tax deductions and depreciation
• Consider a cost segregation study if the property value warrants it

Next Investment Planning

• Review your financial position for the next purchase
• Assess how much cash flow the current property generates
• Start identifying your next target market or property
• Scale your portfolio strategically

The 90-Day Dashboard

Track these key metrics through your first 90 days:

If you're hitting these targets by day 90, your investment is performing. If not, identify the gaps and adjust your strategy.

Ready for Property #2?

The confidence from successfully managing your first DSCR property makes the second one easier. The systems you build in these 90 days — bookkeeping, vendor relationships, management processes — scale to every future property.

Get pre-qualified for your next DSCR loan →