Finance your next California rental, BRRRR, or portfolio refinance using cash-flow based lending. At Capital Bridge Solutions, we structure DSCR loans around your property's income—not your tax returns—so you can move fast when a good deal hits your inbox.
A Debt Service Coverage Ratio (DSCR) loan is an investment-property mortgage that qualifies you based on the property's cash flow instead of your personal W-2 income.
DSCR = Net Operating Income (NOI) ÷ Total Debt Service (PITIA)
Lenders use this ratio to decide if the rental income can comfortably cover the mortgage payment.
A DSCR of 1.0 means break-even; above 1.0 generally means positive cash flow. Different lenders have different minimum DSCRs (some will go below 1.0 with compensating factors such as strong reserves or higher down payments).
California is a high-cost, high-rent market perfect for DSCR financing
Data-driven insights showing why California is the #1 state for DSCR loan investments
Why This Matters: California's high property values combined with premium rents create strong DSCR ratios (1.0-1.4+), making it easier to qualify for investment loans without personal income verification. Even expensive coastal markets often produce 1.05-1.15 DSCR due to robust rental demand.
California offers diverse investment strategies across 8+ major markets. Use this data to identify which markets align with your investment goals—cash flow, appreciation, or both.
| Market | Median Price | Median Rent | Avg DSCR | Rent Yield | Strategy |
|---|---|---|---|---|---|
Los Angeles | $925K | $3,200 | 1.10 | 0.42% | Appreciation play |
San Diego | $875K | $3,100 | 1.12 | 0.45% | Balanced |
Bay Area | $1.4M | $4,500 | 1.05 | 0.38% | Long-term appreciation |
Sacramento | $520K | $2,400 | 1.35 | 0.55% | Cash flow + growth |
Inland Empire | $580K | $2,600 | 1.38 | 0.54% | Highest cash flow |
Orange County | $1.1M | $3,800 | 1.08 | 0.41% | Premium market |
Fresno | $385K | $1,850 | 1.42 | 0.58% | Value + yield |
San Jose | $1.5M | $4,800 | 1.02 | 0.38% | Tech hub appreciation |
DSCR > 1.30: Inland Empire, Fresno, Sacramento
DSCR 1.10-1.30: San Diego, LA, Orange County
DSCR 1.0-1.10: Bay Area, San Jose
*Based on 3BR single-family homes with 20% down payment at 7.0% interest rate. Actual DSCR varies by specific property, rent, and loan terms. Data represents 2025 market averages.
California's economy isn't just strong—it's one of the most resilient in the world. These macro factors create sustained demand for rental properties across all market cycles.
5th largest economy globally (if CA were a country)
Impact: Diverse, resilient job market supports rental demand
Most populous U.S. state with continuing migration
Impact: Sustained housing demand across all price points
Historical average over past decade
Impact: Leverage amplifies equity growth for refinancing
LA, SF, SD, Sacramento, San Jose, OC, Fresno, Long Beach
Impact: Portfolio diversification within one state
In quality neighborhoods across top markets
Impact: Consistent rental income with minimal turnover
Higher than national average ($70K)
Impact: Tenants can afford premium rents
Bottom Line: California's challenges are real but manageable for informed investors. The state's economic fundamentals, rental demand, and long-term appreciation make it one of the best markets for building generational wealth through real estate—especially with DSCR financing that focuses on property performance, not your W-2.
See how DSCR loans compare to conventional and hard money financing
| Feature | DSCR Loan (Investor) | Conventional Investment Loan | Hard Money / Bridge |
|---|---|---|---|
| Underwriting Focus | Property DSCR / cash flow | Borrower income, DTI, credit | Collateral & exit, sometimes experience |
| Income Docs | Usually no tax returns / W-2s | Full income docs required | Minimal, mostly asset-based |
| Typical Use Cases | Long-term rentals, BRRRR refi, portfolios | Vanilla rentals, W-2 borrowers | Fix & flip, short holds, heavy rehab |
| Term Length | 30–40 yr, often fixed, sometimes I/O | 15–30 yr fixed/ARM | 6–24 months |
| Rate & Fees (Relative) | Higher than conventional, lower than hard money | Lowest rates if you qualify | Highest rates & fees |
| Prepayment Penalties | Common (e.g., 3–5 year step-downs) | Often limited or none | Often yield maintenance / minimum interest |
Capital Bridge Solutions positions DSCR as the sweet spot: long-term, rental-focused financing with easier qualification than conventional but usually cheaper and longer-term than hard money.
See how DSCR financing accelerates wealth building in California real estate
Cash Flow Strategy
Appreciation Strategy
Both scenarios show 200%+ ROI in 5 years, but notice the difference in strategy:
With DSCR financing, you can pursue either strategy (or both!) without qualifying based on your personal income. Your property's performance is all that matters.
*Projections based on historical California market averages and assume 7.0% interest rate, 30-year loan, 3% annual rent increases, and conservative expense estimates. Individual results will vary. Past performance does not guarantee future results.
Everything you need to know about California DSCR loans
Send us your property details and we'll calculate your DSCR, show you viable loan structures, and help you decide if DSCR is the right tool.
Available to California real estate investors • Based in Orange County • Serving all 50 states