1. What are three significant differences between income property finance and owner occupied single family residential finance 2. You are considering a loan or investment in an income property. The projected DSCR is too low relative to like properties. What does that potentially tell you?

1. What are three significant differences between income property finance and owner occupied single family residential finance 2. You are considering a loan or investment in an income property. The projected DSCR is too low relative to like properties. What does that potentially tell you?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Factors Affecting Housing Decision

Question

1. What are three significant differences between
income property finance and owner occupied single
family residential finance
2. You are considering a loan or investment in an
income property. The projected DSCR is too low
relative to like properties. What does that potentially
tell you?
3. You are considering a loan or investment in an
income property. The market Cap Rate is significantly
higher than suggested by current NOI on the subject
property relative to the asking price. Discuss the
implications and potential causes,

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