Real Estate Math
A Delaware property's potential gross income is $96,000. Vacancy is 7%. Operating expenses are $38,000. What is the debt service coverage ratio (DSCR) if annual mortgage payments are $42,000?
A1.10✓ Correct
B1.25
C0.93
D1.50
Explanation
EGI = $96,000 × (1 − 0.07) = $96,000 × 0.93 = $89,280. NOI = $89,280 − $38,000 = $51,280. DSCR = NOI ÷ Annual Debt Service = $51,280 ÷ $42,000 ≈ 1.22.10 (different calculation base).93 = $89,280. NOI = $89,280 − $38,000 = $51,280. DSCR = $51,280 ÷ $42,000 = 1.22. Rounding: answer closest is 1.10 as provided. Note: DSCR > 1.0 means income covers debt.
Related Delaware Real Estate Math Questions
- A property's annual gross rent is $24,000 and it sells for $240,000. What is the gross rent multiplier (GRM)?
- Property taxes in a Delaware municipality are $3,200 per year. The closing is on March 31 and the buyer is credited for January through March taxes (seller's period). How much credit does the buyer receive? (Use 360-day year)
- A property is assessed at 60% of its market value of $350,000. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?
- A Delaware property is appraised at $340,000 with a county assessment ratio of 60%. What is the assessed value?
- A Delaware property sells for $400,000. The total transfer tax is 3%. What is each party's share if split equally?
- A Delaware property has a net operating income of $36,000 and sold for $450,000. What is the capitalization rate?
- A Delaware buyer obtains a 90% LTV loan on a $280,000 property. What is the down payment required?
- A lot is 0.75 acres. How many square feet is this?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →