IREM Certified Property Manager (CPM) Certification Exam

What does a Debt Service Coverage Ratio (DSCR) of 1.25 indicate?

The property generates 25% less income than needed to cover debt payments The property's NOI is 25% more than the annual debt service The loan-to-value ratio is 125% Operating expenses exceed income by 25%

Correct Answer:

The property's NOI is 25% more than the annual debt service

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