1. Investor-owned office buildings:
A) tend to be more luxurious and aesthetically pleasing than owner-occupied office buildings.
B) are usually designed to project the desired image of the tenants.
C) are typically leased on a year-to-year basis.
D) are often leased with provisions for tenants to pay operating expenses above some specified amount per square foot.
2. If lenders insist on a debt coverage ratio of at least 1.2, net operating income is $250,000 and the annual debt service constant is .105, and if all other lender criteria are satisfied, the maximum mortgage loan the property will support is:
A) less than $1.8 million.
B) more than $1.8 million but less than $2.0 million.
C) more than $2.0 million.
D) not determinable with the information supplied.