End of Chapter 20 Questions and Answers

A property has an stable net operating income of $1,500,000 per year. With a loan to value ratio of 75%, a required debt service coverage ratio of 1.20, and contract rates at 9.0% for 25 year am, 5 year balloon notes, what is the maximum mortgage that this property can borrow? Answer: $1,500,000/1.2/12 = $104,166.67 for payments that support $12,412,669 for a 9% 25 year amortization. The 5 ... ................
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