DSCR Loans for Tech Workers: Building a Rental Portfolio with RSU Income

If you work in tech, your compensation probably looks nothing like a traditional salary. Base pay is just one piece — RSUs, stock options, annual bonuses, sign-on bonuses, and sometimes crypto compensation make up a significant chunk of your total comp. At companies like Google, Meta, Amazon, and Apple, RSUs can represent 30-60% of total compensation.

This is great for your bank account. It's terrible for traditional mortgage applications.

Conventional lenders struggle with tech compensation. They want simple, predictable W-2 income — not vesting schedules, fluctuating stock prices, and bonus structures that change yearly. The result? Tech workers earning $200,000-$500,000+ often qualify for less mortgage than a government employee making $90,000.

DSCR loans offer a cleaner path to building a rental property portfolio — one that doesn't require explaining your RSU vesting schedule to a confused underwriter.

The Tech Compensation Problem in Traditional Lending

RSUs: The Qualification Nightmare

Here's how a conventional lender typically handles RSUs:

1. They look at your last 2 years of tax returns
2. They average your RSU income over those 2 years
3. If stock prices dropped between Year 1 and Year 2, your "qualifying income" drops even though your share grants didn't change
4. Some lenders won't count RSU income at all unless you have a 2-year history of receiving them

Example: A senior engineer at a FAANG company has:

• Base salary: $190,000
• RSU grants: $150,000/year (at grant price)
• Year 1 actual RSU income (after vesting + stock appreciation): $180,000
• Year 2 actual RSU income (stock declined 25%): $112,000

The lender averages Year 1 and Year 2: ($180,000 + $112,000) ÷ 2 = $146,000 in RSU income. But if the stock dropped further recently, the lender might discount this further or require a "trending" analysis that reduces it even more.

Total qualifying income might land at $300,000 — despite the engineer's actual W-2 showing $370,000 last year.

Stock Options Are Even Worse

If your comp includes ISOs (Incentive Stock Options) or NSOs (Non-Qualified Stock Options), lenders often refuse to count unexercised options entirely. And exercised options create one-time income spikes that get averaged down.

The Layoff Factor

Tech layoffs have become cyclical. Even if you've never been laid off, conventional lenders factor in industry stability. Some will apply additional scrutiny to tech workers, especially at startups or companies that have announced workforce reductions.

Bonus Variability

Performance bonuses in tech can swing wildly — $30,000 one year, $60,000 the next, $15,000 during a down cycle. Lenders average them, apply declining trend analysis, and often reduce your qualifying income well below reality.

How DSCR Loans Work for Tech Investors

A DSCR loan ignores all of the above. The qualification is based on one ratio:

DSCR = Property's Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)

Your RSUs, stock options, base salary, and bonus structure are irrelevant to the lender. The property either cash flows or it doesn't.

For a deep dive into DSCR mechanics, see our guide on what DSCR ratio means.

What DSCR Lenders Do Care About

• Credit score: 660+ minimum, 720+ for best rates
• Down payment: 20-25% of purchase price
• Property DSCR: 1.20+ (rent covers mortgage by at least 20%)
• Reserves: 6-12 months of mortgage payments in liquid assets
• Property condition and marketability

For tech workers, the reserves requirement is usually easy to meet — between cash savings, brokerage accounts, and vested RSUs, most tech professionals have significant liquid assets.

Building a Tech Worker's Rental Portfolio

The Tech Advantage: High Income, High Savings Rate

Tech workers have a unique position: high income (even if hard to document for mortgages) combined with the ability to save aggressively. A senior engineer saving 30-40% of their after-tax income can accumulate $50,000-$100,000+ per year for real estate investing.

The strategy: use your tech income to fund down payments, and use DSCR loans to finance the properties.

Real Example: From RSUs to Rental Portfolio

Meet James

James is a Staff Software Engineer at a public tech company in Seattle.

• Base salary: $205,000
• RSU income (annual vesting): $160,000
• Total comp: $365,000
• After-tax take-home: ~$230,000
• Annual expenses: $120,000 (mortgage, living, travel, etc.)
• Annual savings available for investing: ~$110,000
• Current savings/investments: $340,000 (brokerage + cash)

James wants to build a rental portfolio generating $8,000/month in cash flow within 5 years — enough to replace his base salary and give him the freedom to quit, go indie, or take risks on a startup.

Year 1: Two Properties in the Southeast

James buys two single-family rentals in the Raleigh-Durham market:

Property A:

• Purchase: $275,000 | Down: $68,750 | Loan: $206,250
• Rate: 7.0% | PITIA: $1,575 | Rent: $2,100
• DSCR: 1.33 | Net cash flow: $152/month

Property B:

• Purchase: $245,000 | Down: $61,250 | Loan: $183,750
• Rate: 7.0% | PITIA: $1,405 | Rent: $1,850
• DSCR: 1.32 | Net cash flow: $115/month

Year 1 investment: $130,000 (down payments) + ~$14,000 (closing costs) = $144,000 Monthly cash flow: $267

Year 2: Scale to the Midwest

James adds two properties in Indianapolis, where prices are lower and cash flow is stronger:

Property C:

• Purchase: $195,000 | Down: $48,750 | Loan: $146,250
• Rate: 7.25% | PITIA: $1,175 | Rent: $1,650
• DSCR: 1.40 | Net cash flow: $228/month

Property D:

• Purchase: $180,000 | Down: $45,000 | Loan: $135,000
• Rate: 7.25% | PITIA: $1,090 | Rent: $1,550
• DSCR: 1.42 | Net cash flow: $225/month

Year 2 investment: ~$105,000 Portfolio cash flow: $720/month (4 properties)

Year 3-5: Accelerate

James continues at 2 properties per year. By year 5:

• Properties: 10
• Portfolio value: ~$2.4 million
• Total invested: ~$650,000 (from savings and reinvested cash flow)
• Monthly gross rent: ~$19,000
• Net monthly cash flow: ~$3,500-$4,500
• Equity accumulated: ~$550,000+

The $8,000/month target isn't hit by year 5 through cash flow alone. But with annual rent increases of 3-4%, cash flow grows significantly each year. By year 7-8, the portfolio is generating $6,000-$8,000/month — and James has $700,000+ in equity as a bonus.

Tech-Specific Investment Strategies

Strategy 1: Time RSU Vesting with Property Purchases

RSUs typically vest quarterly. Plan your property purchases around vesting dates so you have cash available for down payments without selling other investments. If your largest vest happens in February, plan to close on a property in March.

Strategy 2: Diversify Away from Tech

If your salary, RSUs, and 401(k) are all tied to the tech sector, your financial life is heavily concentrated. Rental real estate in non-tech markets provides true diversification:

• When tech stocks crash, your rental properties in the Midwest still collect rent
• When your company does layoffs, your rental income continues
• When your RSUs vest at lower prices, your property values aren't correlated

This isn't just about returns — it's about risk management for a career that's more volatile than most people admit.

Strategy 3: Use DSCR Loans During Employment Transitions

Planning to change jobs? Take a sabbatical? Join a startup? Do a career pivot? DSCR loans work regardless of your employment status. Buy investment properties before, during, or after transitions without worrying about employment verification gaps.

This is especially valuable for tech workers who:

• Take time between jobs (common in tech culture)
• Join early-stage startups with below-market cash comp
• Go independent as consultants or contractors
• Get laid off and want to continue building wealth while job searching

Strategy 4: Invest in Remote Work Migration Markets

You understand the remote work trend better than most. Invest in markets where remote tech workers are relocating:

• Boise, Austin, Nashville, Raleigh-Durham, Tampa, Denver suburbs
• These markets see both population growth and rent growth
• Your insider knowledge of where tech workers want to live is a genuine investment edge

Strategy 5: Consider Short-Term Rentals for Higher DSCR

Furnished short-term rentals (Airbnb, corporate housing) can generate 40-80% more revenue than long-term leases. Some DSCR lenders accept projected short-term rental income. A property that rents for $1,800/month long-term might generate $3,000-$3,500/month as a furnished rental — dramatically improving your DSCR and cash flow.

Tax Optimization for Tech Worker-Investors

Rental real estate offers tax benefits that are particularly valuable for high-income tech workers:

Depreciation Offsets Rental Income

You can depreciate residential rental property over 27.5 years. On a $275,000 property (with $55,000 allocated to land), that's ~$8,000/year in depreciation — a "paper loss" that offsets rental income without costing you cash.

Cost Segregation for Accelerated Depreciation

For higher-value properties or portfolios, a cost segregation study can front-load depreciation deductions. Instead of $8,000/year, you might deduct $25,000-$40,000 in the first year. For a tech worker in the 32-37% federal tax bracket, that's $8,000-$15,000 in tax savings.

1031 Exchanges for Tax-Deferred Growth

When you sell a rental property, you can defer capital gains taxes by reinvesting proceeds into another property through a 1031 exchange. This allows your portfolio to compound without tax drag — similar to how a Roth IRA grows tax-free, but with no contribution limits.

Qualified Business Income Deduction

If you own rentals through an LLC or qualify as a real estate trade or business, you may be eligible for the 20% Qualified Business Income (QBI) deduction on rental income. This effectively reduces your tax rate on rental profits.

DSCR Loan Requirements for Tech Workers

Can I Use Unvested RSUs?

No — unvested RSUs don't count as reserves because they're not liquid. Only vested shares that you can sell count. However, since DSCR loans don't use your income for qualification, this only matters for the reserves requirement.

What About Crypto Holdings?

Some DSCR lenders accept cryptocurrency as reserves, typically at a discounted value (50-70% of current market value). Ask your lender specifically about their crypto policy.

Getting Started with HonestCasa

Your tech income gives you a massive advantage in building a rental portfolio. The challenge was always qualifying for financing in a way that reflects your true financial strength. DSCR loans solve that.

Here's your next steps:

1. Inventory your liquid assets — cash, brokerage, vested RSUs (what's available for down payments?)
2. Set a portfolio goal — how much monthly cash flow do you want, and by when?
3. Pick 2-3 target markets — look for cash flow markets outside expensive tech hubs
4. Get pre-qualified — know your DSCR borrowing capacity before making offers
5. Start acquiring — 2-3 properties per year is aggressive but achievable on tech income

Apply through HonestCasa to get pre-qualified for a DSCR loan. We work with tech professionals regularly and understand how RSU income, stock options, and variable compensation work — even though we won't need to document any of it.

For the complete rundown on DSCR loan mechanics, requirements, and rates, check out our DSCR loan guide.

The Bigger Picture

You spend your career building products, systems, and technology that creates value. A rental portfolio is no different — it's a system you build once that generates returns for decades.

DSCR loans are the API that connects your capital to real estate returns without the friction of traditional underwriting. The property's performance is the only input that matters. Your job is to find properties where the output — cash flow, appreciation, equity — exceeds the input.

You already think in systems. Apply that thinking to real estate, and the results compound just like good code: slowly at first, then all at once.