The bank requires a debt coverage ratio of at least 1.50. Your net operating income (NOI) is $5,500,000
January 6th, 2018
The bank requires a debt coverage ratio of at least 1.50. Your net operating income (NOI) is $5,500,000 what is the maximum debt service the lender will allow? Give the formula and show all computations. Assuming the lender is willing to amortize a loan for 25 years at 5.50 percent and requires a 50 percent down payment what is the “value” of the property??