Real Estate Math

A property has a net operating income of $45,000 and an annual debt service of $32,000. What is the debt coverage ratio (DCR)?

A1.23
B1.41✓ Correct
C1.52
D1.67

Explanation

DCR = NOI ÷ Annual Debt Service = $45,000 ÷ $32,000 = 1.406 ≈ 1.

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