Who this suits
Self-employed investors, people growing past a handful of conventional mortgages, and anyone finishing a renovation who wants to hold rather than sell. Coming off a fix-and-flip loan or a bridge loan? A DSCR refinance is the usual next step once tenants are in place.
Running the numbers in Seattle
Seattle has deep rental demand, with a large tech and healthcare workforce, the University of Washington and steady in-migration, but purchase prices are high relative to rents. That means coverage ratios can be tight, especially on single-family homes in pricier neighborhoods. Duplexes, homes with a legal ADU or DADU, and properties further south or north on the light rail lines often pencil out better.
Lenders count property taxes and insurance in the calculation, so get a real insurance quote early. Older homes with outdated electrical or roofs can cost more to insure.
Local rules that affect your rent roll
- Rental registration. Seattle rentals must be registered under the city's Rental Registration and Inspection Ordinance (RRIO), and properties are periodically selected for inspection.
- Notice periods. Seattle requires longer advance notice than many cities for rent increases, and it limits the grounds on which a tenancy can be ended. Plan rent growth accordingly.
- Statewide limits. Washington passed rent-stabilization legislation in 2025 that caps annual increases on many residential units. Check how it applies to the specific property before you underwrite growth.
None of this makes Seattle a bad rental market. It makes realistic underwriting more important, which is exactly what a DSCR lender will do anyway.