Question
The Debt Coverage Ratio is the ratio of Net Operating Income (NOI) to debt service. If the monthly NOI from an asset is $157,000 and
The Debt Coverage Ratio is the ratio of Net Operating Income (NOI) to debt service. If the monthly NOI from an asset is $157,000 and current Debt Coverage Ratios are 1.4, what can you borrow if the interest rate is 10% based on the monthly payments and twenty-year amortization?
Step by Step Solution
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To calculate the maximum amount that can be borrowed based on the Debt Coverage Ratio DCR we can us...
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Real Estate Principles A Value Approach
Authors: David C Ling, Wayne Archer
5th edition
77836367, 978-0077836368
