apse QUESTION 25 An income producing property has an expected NOI of $750,000 in year 1 and $930,000 in year 2. The potential investor will hold this investment 2 year (Sell at the end of year 2). The owner will fund the investment using debt and equity. The loan is a fixed rate mortgage amortized over years term with an interest rate equal to 6.00% and a LTV of 75% with monthly payments. The purchase price of the property is $5.450,000 an resale value is $5.553.000 (in Year 2). Ordinary income Tax is 35%, the property depreciates in 39 years, where the capital gains tax rate is 15% and depreciation recapture tax rate is 250. The land represents 25% of the value of the property. Estimate the Before Tax Cash Flow of Year 1. $398.591 $750,000 O 51.623.000 5256,043