@Kyle Robichau what we'll typically do on the commercial side is finance anywhere from 70-80% of the purchase price. We'll analyze the cash flow based on the gross rents stressed with about 5 different occupancy rates from breakeven to about 1.30x debt service coverage to make sure the project can cash flow itself. Most of our amortizations are between 15-25 years based on the age of the property and condition and we'll usually match the loan term to the amortization up to 20 years. Our loans typically reprice every 5-10 years. For expense analysis we'll use actual taxes (from the respective CAD), estimated insurance, typically estimate a management expense (8-10% of EGI), and use an estimated maintenance expense (3-5% of EGI). In some cases we've financed 70-80% of the purchase price and rehab of a property interest only for 3-6 months, which then converts to a permanent loan.
Debt service calculation equals ((gross rents * economic occupancy) - (actual+estimated expense)) / Annual debt service
