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8) You are going to buy a multifamily property in Milwaukee. You have spoken to your bank, and they've determined that they can give you

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8) You are going to buy a multifamily property in Milwaukee. You have spoken to your bank, and they've determined that they can give you 75% loan-to-value on your purchase at 4%. a. If you need to get a 15% return on your equity investment, what is the minimum cap rate that you can pay for the asset? (5 pts) b. If you are calculate a 25% return on your purchase, at what cap rate are you buying the property? (5 pts)

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