In a competitive interest rate environment, monthly cash flow is king. 10-year interest-only (IO) DSCR loans lower monthly payments by eliminating principal amortization during the first decade of ownership.
Cash Flow Comparison Example
On a $400,000 loan at 7.0%, a full 30-year amortizing payment is $2,661/month. The interest-only payment is $2,333/month, adding $328/month ($3,936/year) in direct net liquidity to the investor.
Qualifying Benefit
Because monthly PITIA debt is lower under IO terms, properties qualify with higher DSCR coverage ratios, unlocking higher leverage tiers.
Compare 30-year amortizing vs IO payments instantly on hub.adlercapital.us.
