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Question 9 A commercial property has expected first year NOI of $54.000. If the required debt coverage ratio is 125 for a mor
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Answer #1

$600,450

Debt Coverage Ratio=NOI/Loan payment

=>Loan Payment=NOI/Debt Coverage Ratio
=>Loan Payment=54000/1.25=43200

Maximum Loan Amount=43200/6%*(1-1/(1+6%/12)^(12*30))=600449.81

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