Assuming you sell the property for $4,600,000 at the end of year 2, what is the IRR on investment? Assume 20% long-term capital gains tax ad 2% transaction cost

10) You put in an offer for the multifamily property at $4,000,000 and it is accepted (you are 100% owner). Your local bank is offering 75% loan to value at 4% with a 30-year amortization. The 36-unit property is 95% leased at rents that average $1,150 per month. Expenses average $5,000 per unit per year, and you have a manager that charges 5% of income. Assume you are in the 24% tax bracket and can depreciate the entire purchase price. 10) You put in an offer for the multifamily property at $4,000,000 and it is accepted (you are 100% owner). Your local bank is offering 75% loan to value at 4% with a 30-year amortization. The 36-unit property is 95% leased at rents that average $1,150 per month. Expenses average $5,000 per unit per year, and you have a manager that charges 5% of income. Assume you are in the 24% tax bracket and can depreciate the entire purchase price