Fix-and-Flip
A real estate strategy involving buying distressed property, renovating it, and selling within 6–18 months for capital gain. Typically financed with hard money. Different from BRRRR which holds for rental.
Why it matters on a DSCR loan
Flippers usually finance acquisitions with hard money or bridge debt, so DSCR loans enter the picture when a flip doesn't sell at the target price and the investor pivots to renting it out instead — the so-called flip-to-hold exit. That pivot works best when the rehabbed property's market rent covers the new payment; otherwise a no-ratio DSCR variant may be the fallback. Investors who plan the DSCR exit before buying, rather than after a failed listing, tend to avoid getting squeezed by seasoning requirements and holding costs.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).