Calculate the DCR for an income producing property to be acquired at a price of $7M...

 

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Calculate the DCR for an income producing property to be acquired at a price of $7M and a CAP of 5.5%. The down payment on the property is 30% of the property value and the mortgage on the remaining balance is a fixed-rate interest only loan at a rate of 4%. What is the meaning of a DCR of 1.40, for example? Please explain. List and briefly explain three different factors that are likely to cause the lender to require a higher DCR from investors? Calculate the DCR for an income producing property to be acquired at a price of $7M and a CAP of 5.5%. The down payment on the property is 30% of the property value and the mortgage on the remaining balance is a fixed-rate interest only loan at a rate of 4%. What is the meaning of a DCR of 1.40, for example? Please explain. List and briefly explain three different factors that are likely to cause the lender to require a higher DCR from investors?