It determines the repaying capacity of the person. Net operating income/ annual debt service = DSCR Annual debt service is referred to all the payment that will be made to the bank that is the principal as well as the interest. If it is lesser than that, it will mean that the investment will not be able to generate that much income as is needed for the repayment of the loan. Anything that is less than one means, that the income from the property will not be able to pay hundred percent of the mortgage. 15 then it means that the investment is also making a profit of fifteen percent other than paying the loan. The LTV is basically the amount you have to repay. It is calculated with the help of the equation that is given below. If one subtracts the down payment from the purchase price then one will get the loan amount. This is just the ratio of debt you have when compared to the assets you have. It is calculated by the equation given below. It is the amount of debt you have compared to the amount of your assets. If you do the calculations beforehand, you will know how much loan you need and how much you can take.