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What is the maximum debt capacity

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You are looking at investing in an office building. Your analysis indicates an expected Year 1 NOI of $422,000. You have contacted a lender who tells you he will provide an interest-only loan for a 10 year period at 7%, but he requires a DCR (Debt Coverage Ratio) of at least 1.3. Ignoring other factors, what is the maximum debt capacity of this property (ie. maximum loan amount) (rounded)?

Reference no: EM133076107

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