Finance
A Virginia investment property is financed with a $500,000 loan at 6% for 25 years. The monthly P&I payment is approximately $3,222. What is the Debt Service Coverage Ratio (DSCR) if annual NOI is $60,000?
A1.0
B1.16
C1.25✓ Correct
D1.55
Explanation
Annual debt service = $3,222 × 12 = $38,664. DSCR = NOI ÷ Debt Service = $60,000 ÷ $38,664 = 1.
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