Question
1. You are buying an investment property. It is October 15 th . You get the following information from the seller: Collected rent is $10,000.
1. You are buying an investment property. It is October 15th. You get the following information from the seller: Collected rent is $10,000. Property tax and Insurance is escrowed and $950 to date. Utilities expense is $800 to date.Interest expense is $900 and mortgage payment is $1,450 per month. What is the Annual Net Operating Income?
2. You are analyzing an investment property. You have calculated the Net Operating Income to be $8,000.00. After further investigation, you find the owner replaced the roof at a cost of $2,200.00. You also notice his debt service on the loan was $3,000. What was the cash flow?
3. You are buying an investment property. It is November 15th. You get the following information from the seller: He says he gets rent of $1,100 per month. Collected rent to date shows to be $11,800. Property tax was $900 and Insurance is $1,100 annually. Utilities expense is $400 to date.Annual interest expense is $3,100. Payment is $700/month. Annual depreciation is $1,673. He replaced HVAC for $1,250.00. Maintenance expenses were $500.00 so far this year.
4. What is the Annual Effective Gross Income above?
5. What is the Annual Gross Potential Income above?
6. What are the Annual Total Operating Expenses?
7. What is the Net Operating Income?
8. Debt service on the property above is
9. What is the Cash Flow?
10. You have an investor that is looking for an investment that will provide a 10 cap rate. What can he pay for this investment?
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