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An apartment building owner is interested in a mortgage from a Canadian bank. What is the largest monthly mortgage payment that would be allowed given
An apartment building owner is interested in a mortgage from a Canadian bank. What is the largest monthly mortgage payment that would be allowed given the following facts:
square footage of propertyis 35000
rental rate is $20 per square foot per month
cost of rental property associated with vacancy, maintenance and credit losses is 10% of rental income
minimum debt service ratio is 1.3
Express your answer in dollars to the nearest dollar.
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Step: 1
First we need to calculate the gross rental income per month Gross rental income is the amount collected from tenants before deducting expenses With a ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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