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Episode 31: Insurance, Taxes, and HOA Fees: The Hidden Costs That Kill DSCR Deals
Truss Talk
You ran the math on a rental property, the rent easily covers the mortgage, and the deal looks profitable on paper. But right before closing, your lender turns around and denies your Debt Service Coverage Ratio (DSCR) loan. What went wrong?
In this episode of Truss Talk by The Truss Financial Podcast, Jeff Miller (CEO) and Jason Nichols (CMO) expose the three hidden expense traps that sabotage real estate investor deals at the finish line: property taxes, insurance premiums, and HOA dues. Discover why comparing rental income to just your mortgage principal and interest (P&I) is a recipe for denial—and how underwriters actually calculate your true debt coverage using full PITIA (Principal, Interest, Taxes, Insurance, and Association dues).
Before you make an offer or put earnest money at risk, tune in to learn the 4-step pre-offer due diligence framework that protects your cash flow and guarantees your DSCR deal qualifies from day one.
In this episode, you’ll discover:
The PITIA Disconnect: Why lenders underwrite rental cash flow against total housing expenses (PITIA) rather than just principal and interest (P&I).
Property Tax Surprises: How regional tax rates (like 2.5% effective tax rates in Texas vs. California) can turn a 1.25 DSCR deal into an unqualifying 0.95 ratio.
The 2026 Insurance Trap: Navigating rising landlord policy costs, FEMA flood zone mandates, and western wildfire risk designations that spike annual premiums.
HOA & Special Assessment Pitfalls: Why lower condo purchase prices often hide deal-killing HOA dues and unannounced capital improvement assessments.
Get in Touch with Truss Financial Group:
Evaluating a rental deal and want to verify your DSCR calculation using real underwriting numbers? Connect with our team to run your deal with complete transparency with zero hard credit pulls and no obligation:
Toll-Free Phone: +1 888-878-7715
Website: trussfinancialgroup.com
Fill the form for us to contact you: trussfinancialgroup.com/contact
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