This page allows you to input your financing details and use the debt calculator to estimate the maximum debt for your property. These inputs are crucial for generating a debt schedule and conducting a thorough cash flow analysis.
Financing Section:
Down Payment Amount: Automatically calculated based on your inputs. It reflects the percentage of the total acquisition cost being covered without financing.
Loan Amount: You can specify the loan amount as a percentage or in dollars. Switch between Amount in $ and LTC % (Loan-to-Cost ratio) based on your preference.
Interest Rate: Input the annual interest rate for your financing plan.
Amortization: Select the loan amortization period in years to structure the repayment schedule.
Interest Only: Specify the number of months the loan will be interest-only, allowing you to defer principal payments for a certain period.
Debt Calculator:
This tool estimates the potential debt amount for the property using three key inputs:
NOI (Net Operating Income): The annual income generated by the property after deducting operating expenses.
Minimum DSCR (Debt Service Coverage Ratio): The ratio of NOI to debt payments. A higher DSCR indicates greater financial cushion for debt payments. You can get this number from your debt broker if you don't know this already.
Maximum LTC (Loan-to-Cost ratio): The maximum percentage of the acquisition cost that can be financed.
Maximum Debt:
The calculator will automatically estimate the Maximum Debt amount based on your inputs. This is the total loan amount you can secure for the property, ensuring it aligns with your investment and financing strategy.
Use the info icons for further explanations of each input. Once you have entered and reviewed all the necessary data, proceed with the financing details for accurate debt scheduling and cash flow analysis.