Pro Tips
1.Interest Coverage Ratio = NOI / Annual Interest Expense
2.Lenders typically want ICR ≥ 2.0x minimum
3.ICR ≥ 2.5x is considered very strong
4.ICR < 1.5x indicates property may not support current debt load
5.ICR shows debt service cushion before NOI fails to cover interest
6.Works best for income-producing properties like NNN leases