The Quick Read: Building a DSCR rent roll for a triplex means listing every unit on its own line, assigning each unit one supportable rent, adding those rents together, and dividing the total by a single PITIA payment (principal, interest, taxes, insurance, and any association dues). With mixed leases, each unit usually counts at the lower of its lease rent or the appraiser’s market rent.
- Each unit gets its own line with tenant, rent, lease dates, and status.
- A lease above market is typically capped at market. A lease below market usually counts at the lease.
- Vacant units commonly count at appraiser market rent, though some programs add conditions.
- Month-to-month or expired leases often fall back to market rent, with the lease kept as support.
- Clearing 1.00 is a coverage test. It is not the same as positive cash flow.
Triplex files tend to be forgiving in one way and strict in another. Three rent streams sit against one payment, so one weak unit gets diluted. But the underwriter reads each unit separately, so a messy rent roll can lower the credited rent before the ratio is ever calculated. This guide walks through the build, the lease-by-lease rules, and the edge cases. For the broader program picture, see Lendmire’s complete DSCR loans guide.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 22, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 22, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Key Terms Defined
Rent roll: A schedule listing every unit, its tenant, its rent, and its lease end date.
PITIA: The full monthly obligation: principal, interest, taxes, insurance, and association dues if any.
Market rent: The rent an appraiser concludes a unit would earn on the open market.
In-place rent: The rent a tenant currently pays under a lease or a documented payment history.
Holdover: A tenant who stays after the lease term ends, usually without a new written lease.
Form 1025: The appraisal form for two- to four-unit properties, which carries its own comparable-rent analysis.
What Does an Underwriter Do With a Triplex Rent Roll?
The rent roll tells the lender which rent each unit can credibly support. A triplex is a residential property, so the file is tested as rent divided by PITIA rather than the commercial method of net operating income over annual debt service. Some investor-education sites teach the commercial version, which is a different calculation. For one-to-four-unit files, the gross-rent version is the working convention.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, equity, and reserves still get reviewed.
On the appraisal side, a triplex uses the small-income-property report. Fannie Mae’s Selling Guide lists Form 1025 for appraisals of two- to four-unit properties, and the forms list titles it the Small Residential Income Property Appraisal Report. Those agency forms are borrowed for the appraisal only. They do not set DSCR rules. A triplex does not need a separate single-family rent schedule, because the 1025 includes the rent analysis.
How Do You Build the Rent Roll Step by Step?
Work through seven steps, in this order. Doing them out of order is how rent rolls end up contradicting the leases.
1. Collect the leases first. Pull every signed lease for occupied units, plus the purchase contract or current mortgage statement.
2. List the units. Label them Unit 1, 2, and 3, and keep those labels identical on every document.
3. Fill the fields for each unit. Include bedrooms and baths, tenant name or a privacy-safe ID, lease start and end, contract rent, deposit, and status (fixed term, month-to-month, holdover, new, vacant).
4. Record concessions and recurring charges. Free months or credits that sit outside the lease reduce effective rent. Disclose them accurately.
5. Add the market rent from the appraisal. The appraiser reconciles a market figure for each unit on Form 1025.
6. Assign one counted rent per unit. Use the lower-of rule described below.
7. Reconcile, then divide. Check the roll against leases, deposits, and payment records. Then add the three counted rents and divide by one PITIA figure.
Keep two versions if it helps: an owner-tracking sheet with everything, and a clean lender-ready sheet with only supportable lines. A short cover note can explain any unusual line, such as a holdover tenant or a recent renewal.
For a fuller look at the document package, Lendmire’s piece How to Prepare Leases and a Rent Roll for a 2-4 Unit DSCR Loan covers what to assemble.
Which Rent Counts for Each Unit?
Across the wholesale network, most programs credit each unit at the lower of the lease rent or the appraiser’s market rent. The test runs unit by unit. It does not average the building. A triplex with one unit above market and one below does not offset: the high unit earns no extra credit, and the low unit loses the shortfall.
| Unit situation | Typical rent basis | Supporting documents | Common fix |
|---|---|---|---|
| Fixed lease, time left, at market | Lease rent | Signed lease, deposit proof | None needed |
| Lease above market | Market rent (capped) | Lease, 1025 rent analysis | Expect the cap |
| Lease below market | Lease rent | Lease, payment history | Renew at market before appraisal |
| Month-to-month | Often market rent | Lease, bank deposits | Sign a new term lease |
| Expired, holding over | Often market rent | Old lease, payment records | Document the holdover |
| New lease just signed | Lease rent, if supported | Lease, first payment | Show first rent received |
| Vacant | Usually market rent | 1025 market rent | Check program conditions |
Treat that table as the common pattern, not a promise. Programs differ, and exact eligibility depends on lender guidelines, credit profile, reserves, and property review.
Worked Example: A Triplex With Three Lease Statuses
Run the numbers on a hypothetical triplex. The figures below are ratios and relative positions only, not sourced market data.
- Unit 1 has a signed lease above the appraiser’s market figure. It counts at market.
- Unit 2 has a signed lease below market. It counts at the lease.
- Unit 3 is month-to-month. It counts at market, with the old lease kept as support.
Add the three credited rents and divide by one PITIA figure. Say that combined total lands the file at roughly 1.15x. That clears the 1.00 mark where many select programs start, with modest room to spare.
Now see what one fix does. If Unit 2’s tenant renews at market before the appraisal, Unit 2 moves from its low lease to the market figure. The credited total rises, and the same file might move toward 1.25x. Nothing about the building changed. Only the paper did.
The lesson is simple. A stale below-market lease lowers the ratio for as long as it runs.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What If a Unit Is Vacant or the Roll and Leases Disagree?
A vacant unit usually does not disqualify a triplex. Many programs underwrite vacant units on the appraiser’s market rent, though some add lease-up or seasoning conditions, and others discount vacancy or reduce leverage. This varies by program, so ask before you go under contract.
When the roll and a lease disagree, the lease and the payment record win. Fix the roll, not the lease. Check the rent, dates, and deposit on each line against the signed document and recent bank deposits. A seller-provided rent roll deserves extra care in a purchase: confirm it shows in-place rent rather than hoped-for rent.
Where the General Rule Breaks
A few situations bend the standard method.
- Mixed-use buildings. A commercial space inside the triplex raises eligibility questions. Programs apply their own rules to commercial space, and some portfolio pools do not accept mixed-use at all. Confirm eligibility before contract.
- Rent-stabilized units. Treatment may follow the legal registered rent, depending on the program.
- Subsidized rent. Contract rents on subsidized units may differ from market, so expect program-specific handling.
- Seller concessions. Free months or credits can reduce effective rent even when the lease shows a full figure.
- A short-term rental unit. Income evidence works differently for short-term rentals, and the appraisal’s rent schedule rarely drives the number. Treat it as program-specific. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
- Appraiser lag. In a rising market, appraiser market rent can sit below current asking rents. Plan for the lower number.
- Ineligible property types. Manufactured homes, log homes, and barndominiums are not offered in the network’s DSCR programs.
Does Clearing the Ratio Mean Positive Cash Flow?
No. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
| Item | Lender DSCR | Investor cash flow |
|---|---|---|
| Income | Credited rent per unit | Actual collected rent |
| Costs | PITIA only | PITIA plus all operating costs |
| Purpose | Loan eligibility | Real return |
A triplex at 1.10x can still lose money after a roof repair and a vacant month. Model both numbers separately.
What Do Program Terms Look Like for a Triplex?
Across the wholesale network, purchase leverage typically runs 75%–80% LTV on an investment property, with select high-leverage programs reaching 85% LTV at roughly a 700+ score. Cash-out refinances top out around 75% LTV on standard rentals. Coverage of 1.00 is where select programs start, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
Credit floors begin at 620 in parts of the network, with most programs wanting around 660 and 700+ unlocking the strongest tiers. Reserves commonly run about 6 months of PITIA, stepping up to about 9 months on loans above $1,500,000. Standard loan sizes run to $3,000,000. A larger down payment can lift the ratio, but it never erases credit floors, reserve rules, or property eligibility. All of this is subject to lender guidelines, and every file is reviewed individually.
Common Mistakes
- Counting market rent where the lease is lower.
- Counting a vacant unit at asking rent instead of appraiser market rent.
- Mismatched dates between the roll and the leases.
- Leaving out insurance or association dues from PITIA.
- Omitting deposits or concessions.
- Assuming a high lease raises loan size.
Frequently Asked Questions
How do I calculate DSCR for a triplex with different rents per unit?
Assign each unit one counted rent, add the three together, and divide by the single PITIA payment. The result is your coverage ratio. Each unit’s counted rent is usually the lower of its lease or market rent, subject to program rules.
Can I count a month-to-month tenant?
Often yes, but usually at market rent rather than the actual figure. Keep the old lease and bank deposits as support. Signing a new term lease before the appraisal tends to make the unit cleaner to underwrite.
What if one unit is vacant?
Many programs count a vacant unit at appraiser market rent. Some add lease-up conditions, discount the unit, or lower leverage.
Does the rent roll replace the leases?
No. The rent roll organizes the information, and the leases and payment records prove it. If they conflict, the documents control, and the roll gets corrected.
Does clearing 1.00 mean the property cash flows?
No. The ratio measures rent against PITIA only. Operating costs and capital needs are outside it, so run a separate cash-flow check.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire, a mortgage broker arranging DSCR loans across 41 markets including Washington, D.C., can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Lendmire’s guide How to Build a Rent Roll and Lease Package for a Portfolio DSCR Loan shows how the same discipline scales across several properties. Not a commitment to lend.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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References
1. Fannie Mae Selling Guide B4-1.2-01
2. Fannie Mae Selling & Servicing Guide Forms
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: DSCR Refinance Timeline Requirements for a Rental Closing · Bridge Loan vs DSCR Loan for a Declined Rural Buyer: What Each Needs · Own Loan vs Portfolio DSCR Loan for Airbnbs in Three or More Markets
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.