Compare Conventional, DSCR, and Hard Money loans side by side using California median home prices. See monthly payments, total cost, and which option fits your strategy.
Avg Cap Rate
4.2%
Median Price
$833K
Property Tax
0.69%
Vacancy Rate
4.8%
Local Factors
Monthly Payment
Total Cost Breakdown
Conventional
DSCR
Hard Money
Hard Money Wins
Hard Money saves you $837,871 in total cost versus DSCR. But don't stop at price — consider qualification speed, prepayment penalties, and how long you plan to hold.
Conventional Loans
Best for buy-and-hold investors with good W-2 income and credit. Lowest rates, longest terms, but requires personal income qualification (DTI ratio). Typically 20–25% down for investment properties, with rates 0.5–0.75% above primary residence loans.
DSCR Loans
Qualify based on the property's income, not yours — perfect for scaling beyond 10 financed properties. Higher rates and points than conventional, but no tax returns or employment verification needed. Most lenders require a DSCR of 1.0–1.25x.
Hard Money Loans
Short-term, asset-based financing for flips, BRRRRs, and bridge scenarios. Highest cost but fastest to close (often 7–14 days). Low down payment requirements with higher interest rates and upfront points. Plan your exit — refi or sell — before the term expires.
Keep running the numbers
Found your loan for California? Now see how it affects your returns.
Calculate your monthly mortgage payment, total interest, and see a full cost breakdown.
Calculate the Debt Service Coverage Ratio to see if a property's rental income covers its loan payments.
Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.
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