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For this assignment, you will create an Excel spreadsheet one-year cashflow model for the following investment opportunity: You are considering purchasing an existing office building
For this assignment, you will create an Excel spreadsheet one-year cashflow model for the following investment opportunity: You are considering purchasing an existing office building for $3,000,000. The property is stabilized with the following metrics: - First-year gross potential income of $452,200 - Vacancy and collection loss of 7% of gross potential income - Operating Expenses of $180,880 for year one - Capital Expenditures of 10% of EG - Mortgage of $2,225,000 - Interest Rate of 7.7% - Loan Amortization of 25 years - Financing Cost equal to 2% Answer the following questions: 1. What are the monthly loan payments? 2. What is the required equity investment? 3. What is the LTV ratio? 4. What is first-year NOI? 5. What is first-year cash flow? 6. What is the Going-In Cap Rate? 7. What is the Equity Dividend Rate? 8. What is the Effective Gross Income Multiplier? 9. What is the Operating Expense Ratio? 10. What is the DSCR? 11. What is the Debt Yield Ratio
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