Question
Question 2 A property is expected to generate $300,000 of NOI over the next 12 months. Discussion with lenders leads to the conclusion that the
Question 2
A property is expected to generate $300,000 of NOI over the next 12 months. Discussion with lenders leads to the conclusion that the minimum acceptable debt-coverage ratio will be 1.20 and that loan terms will be 8% per annum, with 20-year amortization (monthly payments).
A. What is the maximum supportable annual debt service?
Solve 3 ways:
- the PV or PMT functions on Google Sheets
- your HP 12c (tell me which keys you used)
-the Mortgage Constant
B. What size loan does this imply?
Solve 3 ways:
- the PV or PMT functions on Google Sheets
- your HP 12c (tell me which keys you used)
-the Mortgage Constant
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
