Apton Apartments has a gross income of $100,000 a year and a net operating income of $60,000. Barnes Gardens has the same net operating income as Apton Apartments but has a gross income of $120,000. The capitalization rate is 6% for Apton Apartments and 5% for Barnes Gardens.

Both complexes have the same number of units. (for purposes of the following calculations we are assuming 0% vacancy rates and $0 in capital reserves).

1. Assuming a lender will lend based on both LTV and DSCR, and DSCR is the restricting factor for the maximum loan size, which complex is able to get the larger loan?
2. 1. Apton Apartments
   2. Barnes Gardens
   3. Both the same