Real Estate Math
A Hawaii investor's annual debt service (mortgage payments) is $54,000. The property's NOI is $72,000. What is the debt coverage ratio (DCR)?
A0.75
B1.25
C1.33✓ Correct
D1.50
Explanation
DCR = NOI ÷ Annual Debt Service = $72,000 ÷ $54,000 = 1.33. A DCR above 1.0 means the property generates enough income to cover the debt payments.
Related Hawaii Real Estate Math Questions
- An investor in Hawaii purchases a commercial building for $2,000,000. At a 5.5% cap rate, what annual NOI does the building need to generate?
- A Hawaii developer buys 5 acres at $200,000 per acre and subdivides into 20 lots of equal size. If they sell all lots at $60,000 each, what is the gross profit before development costs?
- A Hawaii buyer purchases a condo for $520,000. HOA fees are $850/month, property taxes are $3,240/year, and the mortgage payment is $2,800/month. What is the total monthly housing cost?
- What is the annual interest on a $450,000 mortgage at 6.5% interest (first month only)?
- A Hawaii condominium complex has 120 units. A special assessment of $18,000 per unit is levied for a new roof. What is the total cost of the roof?
- A Hawaii commercial tenant rents 3,500 sq ft at $2.50/sq ft/month with a 3% annual rent increase. What is the monthly rent in year 2?
- A 2,400 square foot Hawaii home sells for $960,000. What is the price per square foot?
- An investor in Hawaii purchases a 6-unit property for $1,800,000 with a 30% down payment. What is the equity at closing?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →