Question
For an US state single family residence house for a rental investment with cost of 450,000USD ( HOA fees usd 250) What assumptions must be
For an US state single family residence house for a rental investment
with cost of 450,000USD ( HOA fees usd 250)
What assumptions must be considered to develop a CAPEX analysis in order to help determine the NPV, modified IRR, economic value added, and discounted payback period? Please explain each of your inputs with bibliography
Short-term rental operational cash flow (approx 1 page)
Average daily rate (range)
Management fee (range)
Vacancy rate (range)
Financing, including purchasing and selling (approx 2 pages)
Required rate of return (or discount rate)
Growth rate
Financing rate (mortgage interest rate)
Closing cost
Reinvestment rate
Taxes (approx 2-3 page)
Depreciation method (straight or double declining).
Entity federal and state tax rate.
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