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The first-year NOI for a building is $150,000. A lender is willing to provide financing up to a debt-coverage- ratio of 1.25. If the mortgage
The first-year NOI for a building is $150,000. A lender is willing to provide financing up to a debt-coverage- ratio of 1.25. If the mortgage has a 5-year maturity, a 20-year amortization, and a 6% interest rate, what is the maximum loan size that you can obtain assuming payments are made on an annual basis
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