Real Estate Math

A NH investor purchases a small office building for $750,000 with 30% down. The bank requires a minimum DSCR of 1.20. If annual debt service is $42,000, what minimum NOI must the property generate?

A$42,000
B$50,400✓ Correct
C$35,000
D$48,000

Explanation

Minimum NOI = Debt Service × DSCR = $42,000 × 1.20 = $50,400.

Related New Hampshire Real Estate Math Questions

Practice More New Hampshire Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Hampshire Quiz →