Debt Coverage Ratio covenant on commercial loan

[Nathan Linder]

What debt coverage ratio would you expect to see on a 14 unit coastal class B office space in Southern California? Building is well established and anchored by a women's health & beauty spa and a large regional mortgage office with a healthy mix of long term tenants ranging from Yoga studio to Interior Designers.

I currently own 12 residential units but this will be my first commercial investment. 

Loan term 50% LTV with local bank.

[Barry Ruby]

@Nathan Linder 50% LTV seems low

A 1.3 DSCR on up for an older property is probably applicable to your deal