(CHAPTER 7) For the calculations in this problem increase decimal places for an intermediate calculations to say, 6 or higher. The more the better if you can do the math in Excel with correct referencing to cells with intermediate results even better because Excel by default doesn't round anything You are a professional real estate investor, and you are considering the acquisition of a distressed property which is on Covina Bank's REO list. The property is available for purchase for $300,000 and you believe that you can take a $240.000 interest-only loan at 9 percent interest requiring monthly payments. You also estimate that the property will estimated to equal $10,000. Title search and inspection would cost a total of $2.000 upon the purchase. require $20.000 total for maintenance, landscaping and renovations during the next year spread out evenly over the months. Future selling expenses for the property are Case 1 If you plan to sell the property 1 year from today, and if you require an 15% annual return in nominal not effective terms, how much would you need to sell it for? To answer this question you will need to first do the following For PV use For PMT use For Nuse For use CPT 61-62 000 0 15 NPV 22 -60 000 3 466 67 9 PV 1 12 63 2 000 41 600 1.25 PV 24 0 0.75 as 2000 41 600 #6 60 000 . 62 000 Then add (pick a number from the table below that corresponds to the amount you'll need to add to your answer: #1 271 600 #2 250 000 *3 240 000 84 21 600 #5 10 000 The required selling price in 1 year will equal (Pick a number from the table below that corresponds to your answer.) $116,549 $116,947 #2 03 $148.892 $160,747 $170,910 35 $181.616 $363,947 $366,549 $477,892 -10 5490,747 115579,910 #125591,616 What will be the required sine price if you sell the house not year, but 2 years from today? Assume you will need to be paying for the loan, maintenance, dans and renovations expenses throughout the door year Your answers (Pick a number from the table below that corresponds to your answer 41 429643 # 35566 14 5 56599 - 5688,003 Cases what will be the required selling price if you sell the house not 1 year, but 2 years from today? This time, unlike Case 2 assume you will need to just keep paying for the loan throughout the additional year. Your answer will be (Pick a number from the table below that corresponds to your answer.) 11 higher than in Case 2 12 lower than in Case 2 Pick a number from the table below that corresponds to your answer 1 02.473 22 104 $32. as 10 6 38 (CHAPTER 7) For the calculations in this problem increase decimal places for an intermediate calculations to say, 6 or higher. The more the better if you can do the math in Excel with correct referencing to cells with intermediate results even better because Excel by default doesn't round anything You are a professional real estate investor, and you are considering the acquisition of a distressed property which is on Covina Bank's REO list. The property is available for purchase for $300,000 and you believe that you can take a $240.000 interest-only loan at 9 percent interest requiring monthly payments. You also estimate that the property will estimated to equal $10,000. Title search and inspection would cost a total of $2.000 upon the purchase. require $20.000 total for maintenance, landscaping and renovations during the next year spread out evenly over the months. Future selling expenses for the property are Case 1 If you plan to sell the property 1 year from today, and if you require an 15% annual return in nominal not effective terms, how much would you need to sell it for? To answer this question you will need to first do the following For PV use For PMT use For Nuse For use CPT 61-62 000 0 15 NPV 22 -60 000 3 466 67 9 PV 1 12 63 2 000 41 600 1.25 PV 24 0 0.75 as 2000 41 600 #6 60 000 . 62 000 Then add (pick a number from the table below that corresponds to the amount you'll need to add to your answer: #1 271 600 #2 250 000 *3 240 000 84 21 600 #5 10 000 The required selling price in 1 year will equal (Pick a number from the table below that corresponds to your answer.) $116,549 $116,947 #2 03 $148.892 $160,747 $170,910 35 $181.616 $363,947 $366,549 $477,892 -10 5490,747 115579,910 #125591,616 What will be the required sine price if you sell the house not year, but 2 years from today? Assume you will need to be paying for the loan, maintenance, dans and renovations expenses throughout the door year Your answers (Pick a number from the table below that corresponds to your answer 41 429643 # 35566 14 5 56599 - 5688,003 Cases what will be the required selling price if you sell the house not 1 year, but 2 years from today? This time, unlike Case 2 assume you will need to just keep paying for the loan throughout the additional year. Your answer will be (Pick a number from the table below that corresponds to your answer.) 11 higher than in Case 2 12 lower than in Case 2 Pick a number from the table below that corresponds to your answer 1 02.473 22 104 $32. as 10 6 38