If the value of the property is USD 1 Million, Value allocated to the building is 90%, 10% to land, Loan- to-value is 80%, Interest Rate is 8%, and loan duration is 30 years, Calculate the following:

A.   Debt Service, Equity Dividend, Equity Dividend Rate, and Debt Coverage Ratio.                                        
B.   Explain the motivating factors of investing in the Income properties.

Answer rating: 100% (QA)

A Calculation of Debt Service Equity Dividend Equity Dividend Rate and Debt Coverage Ratio Given Information Property Value USD 1000000 Allocation to Building 90 Allocation to Land 10 LoantoValue LTV ... View the full answer