Question
Please help me out in following finance-real estate question. You decide you want to take out a loan to finance the purchase of this property.
Please help me out in following finance-real estate question.
You decide you want to take out a loan to finance the purchase of this property. It will be an IO loan at a rate of 6.25%, compounded annually, with annual payments. The lender will provide financing up to a minimum Debt Service Coverage Ratio (DSCR) of 1.2 based off of the 1st year NOI.
What is the largest annual loan payment the lender will allow you to make based on the DSCR?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
