Vornado took an interest-only mortgage with 60% LTV and 10% interest rate to buy an office building for $10,000,000. The building generates $800,000 of rental income per year and requires a $50,000 in operating costs. What is the Debt Service Coverage Ratio for this deal?

Answer rating: 100% (QA)

The Debt Service Coverage Ratio DSCR is a financial metric used to assess the ability of a borrower ... View the full answer