What will be the propertys annual debt coverage ratio

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I'm thinking about the desirability of buying a retail shopping center for $5.5 million. The net operating income for the center during the first year is expected to be $489, 500.

I've applied for a $4,000,000 loan to make the purchase, the terms of which are a 9.25 percent fixed rate amortized monthly over 25 years with a 7-year term. What will be the property's annual debt coverage ratio in its first year of operation?

Reference no: EM131972242

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