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You are contemplating the purchase of a property for $5,000,000.Next year, the property NOI will be $400,000 and it is expected to grow by 3%
You are contemplating the purchase of a property for $5,000,000.Next year, the property NOI will be $400,000 and it is expected to grow by 3% each year. The lenders have indicated that they would be willing to finance the acquisition through a mortgage loan with a 5-year term, 20-year amortization and an interest rate of 7% but require a maximum LTV of 75% and a minimum DSCR of 1.25.Calculate the following:
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