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If you had a property that generated an NOI of $425,000 in Year 1 and a fixed rate, interest only loan of $6,375,000 at a
If you had a property that generated an NOI of $425,000 in Year 1 and a fixed rate, interest only loan of $6,375,000 at a rate of 5.25% and a term of 30 years, what would be your Debt Coverage Ratio (DCR) in Year 1? Would your lending bank prefer that your DCR be higher or lower over the following years?"
"a. 1.27, higher" | ||
"b. 0.79, lower" | ||
"c. 1.01, higher" | ||
"d. 1.27, lower" |
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