Assume that your property portfolio has annual NOI of $100 million with an interest-only cost of debt of 5%. Assume a DSCR (Debt Service Coverage Ratio) requirement of 1.20 has been tightened up by your lenders to 1.30, how much less cash will you be able to use for annual debt service payments? (Just the reduction, not the total.)

Answer rating: 100% (QA)

Reduction in Cash Available for Debt Service Heres how to calculate the reduction in cash available ... View the full answer