Question
hello, I stock in question number 9 you have to use the information of question number 8 to answer it and I don't know how
hello, I stock in question number 9 you have to use the information of question number 8 to answer it and I don't know how to do it please help me to do it
8- you have decided to refinance your eight- unit apartment building, and the appraiser has decided to use the band of investment method to estimate the cap rate in her income approach. You have applied for an 80% L/V mortgage to be amortized over 30 years at a 6.5% rate of interest. Investors in todays market are expecting a return on equity of 16%. What is the cap rate the appraiser should be using in her appraisal given this information and the band of investment method
9- the apartment in the eight- unit building mentioned in question 8 are each renting for $1300 per month the vacancy rate is running at 8% operating expenses for the coming year are expected to be $44,800. If the value of the building turns out to be $755,300, what is the buildings before tax cash flow ( BTCF) ? Use the information in both question8 and 9 and use the table provided
PGI -Vacancies EGI -Operating expense NOI -DS BTCF |
thank you.
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