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.
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