Real Estate Math
A Wisconsin commercial property has annual revenues of $400,000 and a net income before debt service of $120,000. The debt service coverage ratio (DSCR) is:
A2.0
B2.5
C3.0
D3.3✓ Correct
Explanation
DSCR = NOI / Annual Debt Service. If Annual Debt Service = $36,000, DSCR = $120,000 / $36,000 = 3.
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