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Estimate the cost of capital (WACC) to finance your investment. Assume 30% of investment is financed by your own equity and the other 70% is
Estimate the cost of capital (WACC) to finance your investment. Assume 30% of investment is financed by your own equity and the other 70% is financed by a mortgage loan.
House price | $625,000.00 | ||||||
Annual Rent | $2,389.00 | $28,668.00 | |||||
Annual Expenses | $1,510.00 | $18,120.00 | |||||
Deprecation Expense | $22,727.27 | Cost divided by years | 3.64% | ||||
Closing Cost (Estimated cost) | $20,068.00 | Property title, appraseal, escrow (year worth of property tax and inurance)=10,000+Escrow | |||||
Future Home selling price (Estimated cost) | $730,000.00 |
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