You are considering purchasing an office building for $2,500,000. a. What is the implied first-year overall capitalization
Question:
a. What is the implied first-year overall capitalization rate?
b. What is the expected debt coverage ratio in year 1 of operations?
c. If the lender requires DCR to be 1.25 or greater, what is the maximum loan amount?
d. What is the break-even ratio?
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a PGI 450000 Vacancy and collections 40500 EGI 409500 Op Exp...View the full answer
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Related Book For
Real Estate Principles A Value Approach
ISBN: 978-0077836368
5th edition
Authors: David C Ling, Wayne Archer
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