A real estate investor was purchasing a condominium in Florida with plans to operate it as a short-term rental. The unit already had documented short-term-rental income history, giving the transaction something especially useful for a DSCR loan: actual rental performance that could be measured against the property’s qualifying monthly payment.
On the numbers alone, the deal was straightforward. The property generated $2,880 in documented monthly rental income against $2,217.49 in qualifying PITIA, producing a 1.30 DSCR.
But the rental income was not the part of the file that required the most work. Before the purchase could close, two separate property-related issues had to be corrected: the wrong city appeared in both the purchase agreement and appraisal, and the condominium association’s insurance deductible exceeded the lender’s permitted threshold.
The Deal
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The Purchase
The borrower was a domestic investor purchasing a Florida condominium for short-term-rental use.
For an investment like this, the financing has to account for more than the property’s purchase price. The lender also needs a supportable way to evaluate whether the rental income can cover the property’s qualifying monthly housing expense.
This condo already had documented short-term-rental income history. That gave Ziffy Mortgage a measurable income basis for structuring the purchase as a DSCR loan.
Why the Rental History Helped
The short-term-rental income was not based only on what the investor expected the condo to earn after closing. The unit had documented rental history that could be used in the financing analysis.
That documentation supported $2,880 in monthly rental income. When compared with $2,217.49 in qualifying PITIA, the property produced a calculated DSCR of 1.30.
Two Problems Had to Be Fixed Before Closing
The rental numbers supported the loan, but two unrelated issues surfaced while the file was moving toward closing.
The property city was wrong in the documents
The purchase agreement and appraisal both initially listed the wrong city for the property. The discrepancy had to be corrected before the file could continue toward funding.
The condo insurance deductible was above the lender limit
The condominium association’s insurance policy carried a deductible above the lender’s maximum. The team worked with the insurance provider to bring the deductible to the required 5% threshold.
The DSCR was not the only part of the file that mattered
The property generated enough documented rental income to support the DSCR structure, but funding still depended on the rest of the property file meeting lender requirements. The purchase documents had to identify the property correctly, and the condominium association’s insurance also had to meet the required standard.
How the 1.30 DSCR Was Calculated
The qualifying calculation used $2,880 in documented monthly rental income and $2,217.49 in qualifying PITIA.
The 1.30 figure used in this case study is calculated directly from the verified rental-income and PITIA figures for the funded transaction.
Final Loan Terms
| Borrower | Domestic Investor |
| Property | Florida Condominium |
| Rental Strategy | Short-Term Rental |
| Loan Program | DSCR Purchase |
| Loan Amount | $161,000 |
| LTV | 70% |
| Interest Rate | 6.5% |
| Monthly Rental Income | $2,880 |
| Qualifying PITIA | $2,217.49 |
| DSCR | 1.30 |
| Prepayment Penalty | 2 Years |
How the File Moved to Funding
Florida condo under contract
The investor was purchasing the property for short-term-rental use.
Rental history established the income basis
Documented short-term-rental income supported the DSCR analysis.
Property records were corrected
The incorrect city in the purchase agreement and appraisal was fixed.
Condo insurance was brought within guidelines
The association’s insurance deductible was adjusted to the required 5% threshold.
$161,000 loan funded
Ziffy Mortgage funded the DSCR purchase at 70% LTV, with a 6.5% interest rate and a final calculated DSCR of 1.30.
The Loan Funded at $161,000
After the property documentation and condo insurance issues were resolved, Ziffy Mortgage funded the purchase at 70% LTV. The final transaction used $2,880 in documented monthly rental income against $2,217.49 in qualifying PITIA, resulting in a 1.30 DSCR.
70% LTV
6.5% Rate
What This Deal Shows
The condo’s rental history gave the loan a strong starting point, but it did not remove the need to get the rest of the property file right.
The DSCR calculation depended on documented rental income. The closing depended on correcting the property’s location across key documents. The condo review depended on the association insurance meeting the lender’s requirements.
Once those pieces were aligned, the investor was able to complete the Florida short-term-rental purchase with a $161,000 DSCR loan from Ziffy Mortgage.
