How much of a loan would the borrower qualify for

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Problem - Consider a property with an expected Y1 NOI of $95,000. The bank is offering a loan based on a 1.8 DSCR target, interest-only at a rate of 5.25%.

a. How much of a loan would the borrower qualify for?

b. How many points would the bank need to charge to achieve an 6% yield assuming repayment after 33 months?

Reference no: EM132937081

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