Levered Cash Flows from Operations from Zenobia Apartments increased by 64% (13% per year) from Year 1 to Year 5 despite the Net Operating Income increasing by a total of only 13% (3% per year) over the same period.

What explains the outsized growth in Levered Cash Flows from Operations compared to Net Operating Income?

Case Study: Zenobia Apartments Stage 1c: Maximum Loan Size Calculation A lender agrees to originate a loan which carries a 6.00% Interest Rate and 25 Year Amortization. The lender requires a Minimum Debt Service Coverage Ratio of 1.20 and insists on a maximum of 75% Loan-to-Value and 80\% Loan-to-Cost ratios. What is the Maximum Loan Amount you can obtain for this property? What is the Actual Annual Debt Service for this Loan? =pmt(6%,25,2728000)=$213,402 Case Study: Zenobia Apartments Stage 1c: Maximum Loan Size Calculation A lender agrees to originate a loan which carries a 6.00% Interest Rate and 25 Year Amortization. The lender requires a Minimum Debt Service Coverage Ratio of 1.20 and insists on a maximum of 75% Loan-to-Value and 80\% Loan-to-Cost ratios. What is the Maximum Loan Amount you can obtain for this property? What is the Actual Annual Debt Service for this Loan? =pmt(6%,25,2728000)=$213,402