Question
You are a commercial real estate investor, and you are considering purchasing a property for your investment portfolio.You will hold the property for 10 years.You
You are a commercial real estate investor, and you are considering purchasing a property for your investment portfolio.You will hold the property for 10 years.You will take a 20-yearinterest-onlyloanthat requiresmonthly loan payments, at 5% annual interest rate.Considering your estimated net operating income amounts for each year of the planed holding period,and the lender's debt coverage ratio,your planned annual Debt Service is $35,500.
Given this information...
...the loan amount that you would be using for the purchase equals?
...and the loan balance that you would be paying off when you sell the property would equal?
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