What total price is paid for the property

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1. An investment property has an annual net operating income of $85,000. The property has a DSCR of 1.4 The debt service in question covers a loan with monthly payments and a 25-year term at 7% per year. The loan-to-value ratio is 70%. What total price is paid for the property?

a) $715,856

b) $1,022,652

c) $501,099

d) $1,216,955

2. Which of the following properties would probably have the highest capitalization rate?

a.) Krispy Kreme on Holly Tree and College road

b.) Unoccupied house trailer in Leland

c.) Single family home across from the Harris Teeter in Mayfaire

d.) Walgreens on the corner of College and Oleander

e.) Belk in Independence Mall

Reference no: EM131886301

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