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Co-Living Strategies

Padsplitting DSCR Loans

Renting by the room is one of the highest cash-flow strategies in real estate. We use actual room-by-room income in the DSCR calculation — platform lease data for seasoned properties, Padsplit market projections for new acquisitions.

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How Padsplit DSCR Underwriting Works

By converting a single-family home into multiple rentable bedrooms, investors are doubling and tripling their gross revenue. Standard appraisals only credit a single-family market rent — dramatically undervaluing what the property actually earns. Most lenders won't underwrite it at all.

We use actual room-by-room income in the DSCR numerator, giving a true picture of what the property earns. For properties already operating on Padsplit, we use the platform's lease data showing each room's rent. For new acquisitions, we use Padsplit's own market data and room-level projections for the subject property's location. Total gross income from all rooms is what qualifies the deal — no personal tax returns required.

Program Highlights

  • Actual room-by-room income used in DSCR calculation
  • Platform lease data used for seasoned properties
  • Padsplit market projections used for acquisitions
  • Cash-out to fund your next conversion