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I am shareholder in a 47 unit building with a mortgage 1,800,000 dollars. How many 40 to 50 units building have mortgage that high.
I have heard that a formula is used to calculate the size of the mortgage to the size of the building, as a percentage. I am in a building with 300 units. How high should a reasonable mortgage be, and what is the formula- if one exists- based on?
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That seems large depending on the value of the building. We have a 111 unit three building complex with a self-amortizing mortgage originally valued at $2.7 million and now valued at $2.0 million. We also have two unsecured and self-amortizing loans totaling $830k for a windows install. Our Audited Financial Statements are available for details for all to see at: http://www.naborsapts.org/wp-content/uploads/2010/02/finst09.pdf.
With a mortgage that large, I hope the building is making payments on the principal (amortizing). If not, you are at risk not only for high interest payments but if the value of your complex does not increase, you borrowing power may be effectively capped.
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