Real Estate Math

A Massachusetts lender requires a 1.25 DSCR on a property with annual debt service of $48,000. What is the minimum annual NOI required?

A$60,000✓ Correct

B$38,400

C$48,000

D$75,000

Explanation

Required NOI = Debt Service × DSCR = $48,000 × 1.25 = $60,000. Using the values given ($48,000), apply the appropriate formula.. The correct answer is $60,000.. This is a common calculation on the Massachusetts real estate exam.

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