Question
Calculate the GRM, CAP Rate, and Cash-on-Cash Return (Show your work and rounded to the nearest hundredth value): b. A new construction quadplex, with a
Calculate the GRM, CAP Rate, and Cash-on-Cash Return (Show your work and rounded to the nearest hundredth value): b. A new construction quadplex, with a purchase price of $2.300,000. It's a total of two buildings (2 X duplex) with 5,721 Sq Ft of interior space. c. Assume you can get a loan at an LTV of 60%, 30 years fixed rate mortgage at 6.50%, a loan cost of 2 points (you closed escrow on the property on January 1st, 2024) d. Assume vacancy rate of 3%, management fee of 6% on collected rent, property insurance of $0.43 per sq ft, property tax at 1.25%, repair and maintenance expenses at 1% of gross rental income. e. Assume the following rental income for each unit: unit #1 and #2 (4 bedrooms and 3 bathrooms) for $4,200, unit #3 and #4 (4 bedrooms and 2.5 baths) renting for $3,800. f. Assume tenants pay for all utilities and trash. GRM: CAP Rate: Cash-on-Cash Return:
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Statistics For Business And Economics
Authors: Paul Newbold, William Carlson, Betty Thorne
8th Edition
0132745658, 978-0132745659
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