1. An apartment complex has a gross rental income of $648,106.32 and total operating expenses of...

 

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1. An apartment complex has a gross rental income of $648,106.32 and total operating expenses of $167,791.43. The vacancy factor is 5%, and the annual debt service (P&I for the loan) is $350,000. Calculate: Effective Gross Income, Net Operating Income and the Debt Service Coverage Ratio (DSCR). Use the format we used in class and show all your work. Based on what we discussed in class, would a lender find this DSCR satisfactory? Why or why not? 2. A commercial office building shows Gross rental income of $972,159.48. Total operating expenses are $401,687.15. The vacancy factor is 6%, and the annual debt service is $500,000. Calculate: Effective Gross Income, Net Operating Income and the Debt Service Coverage Ratio. Use the format we discussed in class and show all your work. Based on what we discussed in class, would a lender find this DSCR satisfactory? Why or why not? 1. An apartment complex has a gross rental income of $648,106.32 and total operating expenses of $167,791.43. The vacancy factor is 5%, and the annual debt service (P&I for the loan) is $350,000. Calculate: Effective Gross Income, Net Operating Income and the Debt Service Coverage Ratio (DSCR). Use the format we used in class and show all your work. Based on what we discussed in class, would a lender find this DSCR satisfactory? Why or why not? 2. A commercial office building shows Gross rental income of $972,159.48. Total operating expenses are $401,687.15. The vacancy factor is 6%, and the annual debt service is $500,000. Calculate: Effective Gross Income, Net Operating Income and the Debt Service Coverage Ratio. Use the format we discussed in class and show all your work. Based on what we discussed in class, would a lender find this DSCR satisfactory? Why or why not?

Answer rating: 100% (QA)

Effective Gross Income is the Potential Gross Rental Income plus other income minus vacancy and cred... View the full answer