The Lexington Building has the following income and expense figures: Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the LTV% for the Lexington Building? 2. What is the DCR for the Lexington Building? 3. How risky would you consider this loan? 4. If allowable LTV is 85%, how much can be borrowed? 5. If the minimum DCR required is 1.25, how much debt service can be supported? Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the minimum break-even point for this property? 2. If the owner's required rate of return were 8%, what would be the investor's break-even point for this property? 3. If the owner's required rate of return were 10%, what would be the investor's break-even point for this property?