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Determine pros and cons of investing into this property based on the following values: NOI Year 1 $20,795.76 Asking Price $510,000 Before Tax Cash

Determine pros and cons of investing into this property based on the following values: 

 

NOI Year 1$20,795.76
Asking Price$510,000
Before Tax Cash Flow Year 1-$25,930
Equity Invested-$127,500
Effective Gross Income$37,810.48
Operating Expense-$15,124.19
Mortgage Amount$382,500
Debt Service-$46,725
  
Capitalization Rate4.08%
Equity Dividend Rate-20.34%
  
Net Income Multiplier24.52422782
Effective Gross Income Multiplier13.4883253
  
Operating Expense Ratio0.4
Loan to Value Ratio0.75
Debt Coverage Ratio0.4450639909

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Pros of investing in this property 1 Positive Net Operating Income NOI The property generates a positive NOI of 2079576 in Year 1 This indicates that ... blur-text-image

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