Question
A property owner has a property with a forecast net operating income of $100,000 for next year. A lender has indicated that he would make
A property owner has a property with a forecast net operating income of $100,000 for next year. A lender has indicated that he would make a loan on the property based on a 1.25 debt service coverage ratio (DSCR), 9.5 percent interest, and 20-year amortization with monthly payments. What loan amount would this owner expect to receive?
Step by Step Solution
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Heres how to calculate the loan amount the property owner can expect to receive 1 Calculate the annu...
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
