Comments on: Apartment Building Investments – Understanding Debt Service Coverage Ratio http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Peter Skurrhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-98031 Peter Skurr Tue, 18 Oct 2011 11:47:02 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-98031 How do you arrive at $319,345.20 as the debt service value.Very roughly 4,000,000 / 30 = 133333.33 for principal repayment per year Plus 4,000,000 * 0.07 = 280,000 interest payment for first year (will be less, i know)Giving roughly 413333.33 to service debt, NOT 319,345.20.Key question is, is principal repayment part of calculation? Please enlighten me. How do you arrive at $319,345.20 as the debt service value.

Very roughly 4,000,000 / 30 = 133333.33 for principal repayment per year
Plus 4,000,000 * 0.07 = 280,000 interest payment for first year (will be less, i know)

Giving roughly 413333.33 to service debt, NOT 319,345.20.

Key question is, is principal repayment part of calculation?
Please enlighten me.

]]> By: George Alarconhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-74783 George Alarcon Sat, 31 Oct 2009 02:23:30 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-74783 Great article on investing in apartment buildings which can be a sound investment if done right. Great article on investing in apartment buildings which can be a sound investment if done right.

]]> By: Michelle Boudreauhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-74132 Michelle Boudreau Mon, 12 Oct 2009 16:35:31 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-74132 I like your post. No matter what amount of debt a person has, willingness to retire is the first step I like your post. No matter what amount of debt a person has, willingness to retire is the first step

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-72918 Joshua Dorkin Tue, 29 Sep 2009 03:45:07 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-72918 Mat - You can start by signing up for BiggerPockets (free) and start reading. Read the articles, blogs, forums, and everything on this blog. Once you do, you won't need to even ask! Mat – You can start by signing up for BiggerPockets (free) and start reading. Read the articles, blogs, forums, and everything on this blog. Once you do, you won’t need to even ask!

]]> By: Mathttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-72907 Mat Tue, 29 Sep 2009 02:54:08 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-72907 Hi, Im a student looking to be a first time investor. Where do I start? Hi, Im a student looking to be a first time investor. Where do I start?

]]> By: ROBERThttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-67597 ROBERT Tue, 11 Aug 2009 14:23:49 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-67597 Excellent illustration... all such related articles would render themselves much more valuable and useful by following your lead.;"BUY by the numbers". Excellent illustration… all such related articles would render themselves much more valuable and useful by following your lead.;”BUY by the numbers”.

]]> By: Quincy Lewishttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-59911 Quincy Lewis Tue, 09 Sep 2008 17:27:09 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-59911 Ted this article was really great about calculating the DSCR on a property I knew what it was, but you made it more crystal clear so far as how to calculate it. Thanks alot Quincy Lewis in Atlanta,GA. Ted this article was really great about calculating the DSCR on a property I knew what it was, but you made it more crystal clear so far as how to calculate it. Thanks alot Quincy Lewis in Atlanta,GA.

]]> By: davidhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58818 david Tue, 29 Jul 2008 04:52:32 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58818 Sorry about that Ted.Thanks Sorry about that Ted.Thanks

]]> By: Ted Karschhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58817 Ted Karsch Tue, 29 Jul 2008 02:20:58 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58817 Hello David,The NOI is stated above as: $422,500.00The rent paid per unit is not given. Hello David,

The NOI is stated above as: $422,500.00

The rent paid per unit is not given.

]]> By: davidhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58816 david Tue, 29 Jul 2008 01:35:06 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-58816 how did ted arrive @ noi of $475,000 when the rent is $200 per unit times 38 units.I came up with 91,200 noi with the info just presented. how did ted arrive @ noi of $475,000 when the rent is $200 per unit times 38 units.I came up with 91,200 noi with the info just presented.

]]> By: MoneyManhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-55442 MoneyMan Thu, 20 Mar 2008 04:23:32 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-55442 Your welcome... otherwise it's an excellent article with many very good points!!! Your welcome… otherwise it’s an excellent article with many very good points!!!

]]> By: Rachaelhttp://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-55427 Rachael Wed, 19 Mar 2008 17:31:17 +0000 http://www.biggerpockets.com/renewsblog/2008/03/10/apartment-building-investments-debt-service-coverage-ratio/#comment-55427 Thanks for bringing this to our attention. I appreciate it! Thanks for bringing this to our attention. I appreciate it!

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