Question
Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 10-year interest only fixed-rate mortgage
Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 10-year interest only fixed-rate mortgage at an annual rate of 5% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20. If Ann gets a 50% LTV loan for $500,000, what is her DSCR?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
