question archive 13) Consider a property with net operating income (NOI) of $302,400 and a debt coverage ratio of 1
13) Consider a property with net operating income (NOI) of $302,400 and a debt coverage ratio of 1
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13) Consider a property with net operating income (NOI) of $302,400 and a debt coverage ratio of 1.8 applied to first year NOI. What would be the estimated monthly mortgage payment?
A) $14,000
B) $14,500
C) $15,400
D) $15,500
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Q-13)
Net Operating Income(NOI) = $302,400
Debt Coverage Ratio = 1.8
Debt Coverage Ratio = NOI/Annual debt Service
1.8 = $302,400/Annual debt Service
Annual debt Service = $168,000
- Annual debt Service = Monthly Mortgage Payment*12
$168,000 = Monthly Mortgage Payment*12
Monthly Mortgage Payment = $14,000
Option A
