An investor has an opportunity to purchase a property for $2.50M and it has been reported that Year 1 NOI will be $185,000 (for this example, assume this will remain constant for the entire holding period). The investor intends on holding the property for 7 years and has asked a potential lender for a loan under the following terms: $2.1M loan @ 5% for 30 years with monthly payments. The lender will agree to the interest rate, the term, and the monthly payments; however, requires a DCR of 1.40 or higher on investments like this and the DCR is NOT negotiable, which means, if the investors preferred loan amount does not meet the requirements of the DCR, the amount will be reduced so that the DCR is met. The property value is expected to appreciate at a rate of 1.50% per year.

Calculate the LTV ratio based on the loan amount the lender would be willing to accept.