Suppose a property has the following financials:

• Initial Equity = $200,000
• Value = $1,175,000
• NOI = $127,000
• Annual Debt Service = $108,000
• Loan Amount = $975,000
• BTCF = $19,000

Part 1:

What is the loan to value (LTV%) ratio?

65%

72%

75%

83%

Part 2:

What is the debt coverage ratio (DCR)?

0.85

1.18

1.25

7.68

Part 3:

What is the free-and-clear rate of return?

8.50%

9.52%

10.81%

11.25%

Part 4:

What is the loan constant (k%)?

8.5%

11.08%

12.11%

75%

Part 5:

What is the cash-on-cash rate of return ($/$%)?

8.50%

9.50%

11.25%

11.50%