Flashcards
Week F Cue Cards
Cards in this deck (4)
- 1How are commercial loans based?Max loan is based on value of property, income of building, assets, borrowing record
- 2What is Net Operating Income (NOI)?Amount left from property rents available to make mortgage payments
- 3What is Debt Coverage Ratio? (DCR)How much of the TDS is covered by NOI
- 4DCR is high for Apartments and Low for Hotels due to vacancy T/FFalse.
Apartments are low and Hotels are high.
Hotels have higher vacancy which makes the DCR requirement higher to cover the vacant costs.