The Lexington Building has the following income and expense figures: Initial Investment = $1,815,000 Gross Potential...
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The Lexington Building has the following income and expense figures: Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the LTV% for the Lexington Building? 2. What is the DCR for the Lexington Building? 3. How risky would you consider this loan? 4. If allowable LTV is 85%, how much can be borrowed? 5. If the minimum DCR required is 1.25, how much debt service can be supported? Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the minimum break-even point for this property? 2. If the owner's required rate of return were 8%, what would be the investor's break-even point for this property? 3. If the owner's required rate of return were 10%, what would be the investor's break-even point for this property? The Lexington Building has the following income and expense figures: Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the LTV% for the Lexington Building? 2. What is the DCR for the Lexington Building? 3. How risky would you consider this loan? 4. If allowable LTV is 85%, how much can be borrowed? 5. If the minimum DCR required is 1.25, how much debt service can be supported? Initial Investment = $1,815,000 Gross Potential Income = $1,436,000 Operating Expenses = $332,000 Net Operating Income = $960,000 Annual Debt Service = $450,000 Loan Amount = $4,785,000 Property Value = $6,600,000 1. What is the minimum break-even point for this property? 2. If the owner's required rate of return were 8%, what would be the investor's break-even point for this property? 3. If the owner's required rate of return were 10%, what would be the investor's break-even point for this property?
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Answer rating: 100% (QA)
The LoantoValue LTV ratio for the Lexington Building can be calculated as LTV Loan Amount Property Value x 100 LTV 4785000 6600000 x 100 LTV 7250 The ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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