11. Assuming a lender will lend based on both LTV and DSCR, and DSCR is the restricting factor for the maximum loan size, which complex is able to get the larger loan?

1. Apton Apartments
2. Barnes Gardens
3. Both the same

Questions 12-16 pertain to the following scenario:

A property value is $4,000,000, and it has a $3,000,000 loan on it. The annual net operating income is $220,000.

12. What is the capitalization rate?

1. 5.00%
2. 5.25%
3. 5.50%
4. 5.75%

13. When its time to refinance, with an interest rate of 4.00% and a 30-year amortization schedule, what is the loan amount the borrower will be able to get based on a 1.25 minimum debt service coverage ratio?

1. $4,400,000
2. $3,000,000
3. $3,072,098
4. $3,071,553

14. When its time to refinance, assuming a future capitalization rate of 5.00%, with an interest rate of 4.00% and a 30-year amortization schedule, what is the loan amount the borrower will be able to get based on a 1.25 minimum debt service coverage ratio and a 75% maximum LTV?

1. $4,400,000
2. $3,000,000
3. $3,072,098
4. $3,071,553

15. Assuming the current interest rate is 3.75% and the amortization schedule is 25 years, the current annual debt service is approximately:

1. $185,100
2. $112,500
3. $150,000
4. $246,800

16. Assuming the current interest rate is 3.75% and the amortization schedule is 25 years, if the borrower invested $1,120,000 of cash equity (including closing costs), the borrowers cash on cash return is approximately:

1. 5.50%
2. 3.12%
3. 2.68%
4. 19.64%