Given the following information, calculate the debt yield ratio on the following commercial property. Estimated Net Operating Income in the first year: $250,000, Loan amount: $2,047,500, Purchase price: $2,730,000

Question

Quizplus · Accepted Answer

The debt yield ratio is calculated by dividing the Net Operating Income (NOI) by the loan amount. So, $250,000 / $2,047,500 = 0.122 or 12.2%.

Given the Following Information, Calculate the Debt Yield Ratio on the Following