Asset Based Lending recently funded a DSCR loan for a first-time borrower in Indianapolis Indiana. This borrower recently received funding to complete renovations on a single-family rental property. Once renovations were complete they contacted ABL to refinance out of that loan and into a 3-year step-down long-term loan. Though this property is not currently rented to a tenant, the renovations effectively raised the expected monthly rent in line with the market prices. With a DSCR of 1.24 once there is a tenant in place this property will positively cash flow for this borrower. Indianapolis has experienced a boost in the last several years with more people relocating here for career opportunities. This is a recipe for success for rental property owners as approximately 46% of residents rent their homes versus owning.
