# Mortgage Product Boosts Small Investors in Distressed Markets

> Small investors use debt-service coverage ratio loans to buy distressed properties in cities like Cleveland and Baltimore.
- Title: Mortgage Product Boosts Small Investors in Distressed Markets
- Summary: Small investors use debt-service coverage ratio loans to buy distressed properties in cities like Cleveland and Baltimore. Small investors are using…
- Keywords: debt-service-coverage-ratio-loans, small-investors, distressed-markets, cleveland, baltimore, indianapolis, memphis, detroit, forecasa, jumpstart-philly, ken-weinstein, real estate
- Source: The Real Deal — https://therealdeal.com/national/2026/10/12/debt-service-coverage-ratio-loans-provide-lifeline
- Author: TRD Staff
- Published: 2026-10-12T18:00:00+00:00
- Read time: 1 min
- Topics: debt-service-coverage-ratio-loans, small-investors, distressed-markets, cleveland, baltimore, indianapolis, memphis, detroit, forecasa, jumpstart-philly, ken-weinstein, real estate
## Small Investors Target Distressed Markets
Small-time investors are using debt-service coverage ratio loans to buy properties in dilapidated neighborhoods with low prices.
## Cleveland Investor Finds Cheap Deals
A Cleveland investor said she never paid more than $24,000 for a property in the city’s worst neighborhoods.
## Fraud Cases Trigger Lending Decline
Baltimore’s private lending dropped 40 percent year over year due to fraud cases and foreclosure crises.
## Key takeaway

Small investors are using debt-service coverage ratio loans to buy distressed properties in Cleveland, Baltimore, and other cities with low prices.