Case Study: Building a 10-Property Portfolio with DSCR Loans
Meet Marcus: From 1 to 10 Properties in 24 Months
Background: 38-year-old software engineer, $180K W2 income, owned 1 rental property, wanted to scale but hit conventional loan limits. Used DSCR loans to build a 10-property portfolio generating $8,500/month in cash flow.
The Challenge: Conventional Loan Limits
Marcus owned one rental property with a conventional loan but discovered he couldn't scale:
- ✗Conventional loans limited to 10 properties (he wanted more)
- ✗DTI ratio maxed out after 4 properties
- ✗Each loan took 45+ days to close (too slow)
The DSCR Strategy: Sequential Acquisition
24-Month Timeline
Month 0-3: Properties 2-3
Used savings for 25% down on each. DSCR: 1.25+. Cash flow: $600/property
Month 4-9: Properties 4-6
Cash-out refi on Property 1. Used equity for down payments. DSCR: 1.20+
Month 10-18: Properties 7-9
Cash-out refi on Properties 2-3. Cross-collateralization strategy. DSCR: 1.15+
Month 19-24: Property 10
Blanket loan for final property. Portfolio DSCR: 1.30 overall
The Results: Financial Freedom Achieved
Monthly Cash Flow
After all expenses (PITIA)
Total Equity Built
In just 24 months
Portfolio Value
Total property value
Annual ROI
On invested capital
Marcus's Key Strategies:
- Use DSCR loans exclusively - No DTI limits, unlimited properties
- Cash-out refinance every 6 months - Pull equity to fund next purchase
- Target 1.20+ DSCR properties - Strong cash flow from day one
- Reinvest all cash flow - Compound growth accelerates portfolio
- Work with one DSCR lender - Faster approvals, better relationships
Ready to Build Your Portfolio?
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