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Hello, the following is all part of the same question, thanks. A property has the following financial figures: Initial Investment = $1,600,000 Net Operating Income
Hello, the following is all part of the same question, thanks.
A property has the following financial figures: Initial Investment = $1,600,000 Net Operating Income = $445,000 Loan Amount = $4,570,000 Loan term 30 years at 4.75% Property Value = $6,170,000 (Round ADS to nearest whole number) (Questions 1-6) 1. What is the loan-to-value ratio (LTV%)? 2. What is the debt coverage ratio (DCR)? 3. What is the free-and-clear rate of return? 4. What is the loan constant (k%)? 5. What is the cash-on-cash rate of return ($/$%)? 6. Is this property in a positive or negative leverage position? A property has the following financial figures: Initial Investment = $600,000 Net Operating Income = $45,000 Annual Debt Service = $35,000 Loan Amount = $570,000 Property Value = $1,170,000 (Questions 7-12) 7. What is the loan-to-value ratio (LTV%)? 8. What is the debt coverage ratio (DCR)? 9. What is the free-and-clear rate of return? 10. What is the loan constant (k%)? 11. What is the cash-on-cash rate of return ($I$%)? 12. Is this property in a positive or negative leverage position? A property has the following financial figures: Initial Investment = $1,600,000 Net Operating Income = $445,000 Loan Amount = $4,570,000 Loan term 30 years at 4.75% Property Value = $6,170,000 (Round ADS to nearest whole number) (Questions 1-6) 1. What is the loan-to-value ratio (LTV%)? 2. What is the debt coverage ratio (DCR)? 3. What is the free-and-clear rate of return? 4. What is the loan constant (k%)? 5. What is the cash-on-cash rate of return ($/$%)? 6. Is this property in a positive or negative leverage position? A property has the following financial figures: Initial Investment = $600,000 Net Operating Income = $45,000 Annual Debt Service = $35,000 Loan Amount = $570,000 Property Value = $1,170,000 (Questions 7-12) 7. What is the loan-to-value ratio (LTV%)? 8. What is the debt coverage ratio (DCR)? 9. What is the free-and-clear rate of return? 10. What is the loan constant (k%)? 11. What is the cash-on-cash rate of return ($I$%)? 12. Is this property in a positive or negative leverage positionStep by Step Solution
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