Question
You are looking to acquire a property with NOI of $50,000. The asking price is $900,000. You are considering making a full price offer. You
You are looking to acquire a property with NOI of $50,000. The asking price is $900,000. You are considering making a full price offer. You are in discussions with your lender and are anticipating a down payment of 30% and a mortgage constant of 0.06543.
QUESTION: How much will your annual debt service be?
Question 7
In the previous question, you were provided with assumption and calculated debt service. Now, using those same assumptions, calculate the Debt Coverage Ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Calculating Annual Debt Service To calculate the annual debt service we need t...
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Step: 2
Step: 3
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
