Question
A property listed price is $300000. Typical financing terms are an 85% loan (fully amortize CPM) with a 6% interest rate over 15 years. The
A property listed price is $300000. Typical financing terms are an 85% loan (fully amortize CPM) with a 6% interest rate over 15 years. The annual before tax-cash flow from operation (BTCFFO) for the first projected year is $5000 .What is the going-in capitilization rate? Tip: In this question, calculate the mortgage with annual payments, not monthly.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
