Expressed as a percentage, debt yield is a property's net operating income ("NOI") divided by the total outstanding loan amount. Some think of debt yield as the "lender's cap rate". Debt yield divided by the loan constant is equal to the debt service coverage ratio ("DSCR").
Within Assess, Debt Yield is one of four user-inputted loan sizing constraints. Assess calculates the maximum loan amount based on each constraint, and incorporates the minimum of the four (or however many have been selected) into the model.
To access this feature and more, sign up for a free trial of Assess+RE today.