There are several software packages available for running numbers on sq footage, DSC ratios, NOI and GOI etc.
What exactly are you wanting to achieve?
No matter what commercial property you are buying, the basic rules are the same.
GOI - Expenses = NOI
DSC depends upon several factors
1. Type of property, we use a 1.30 for self storage
2. Cash into the deal, i.e. Downpayment, was there an owner 2nd, 1031 or any other non standard cash at closing consideration?
3. Quality of location and
4. Borrower qualifications
Our greatest consideration goes to the property's income stream. Can it support the requested loan amount?
Nov 23, 2009