"Ann wants to buy a building. The annual NOI for the building will be $165.000. She wants to get a 20 year interest only foxed rate mortgage at an annual rate of 7.35% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.25. The tender also has a maximum LTV requirement of 70%. The asking price is $3.000.000. What is the largest mortgage the lender will give Ann based on both the DSCR and LTV requirements?" QUESTION 12 1 "Bob wants to buy a building. He computes the annual NOI for the following year to be $275.000. The sellers asking price for the building is 55.000.000, Bob finds a similar building nearby which sold for 56,000,000 last year and had an NOI of 5360.000. If Bob thinks the building he wants to buy should sell at the same cap rate as the similar building how much should Bob offer