Question
I need help with this assignment, brain can't concentrate and I can't find the formulas in my material. 1. You want to purchase a commercial
I need help with this assignment, brain can't concentrate and I can't find the formulas in my material.
1. You want to purchase a commercial office building that has 8,000 square feet and it currently rents for 14.00 a square foot triple net. If you want a 9%cap rate, what amount would you be willing to pay for this property?
2. If you have 4 unit apartment building and each unit rents for 750.00. Assume a 95% occupancy rate, maintenance cost of 3,500.00 per year, insurance cost of 1400.00 and taxes of 8,500.00. If the price is $250,000. What is the straight payback? What is the cap rate?
3. If you are looking at a 10,000 square foot office building with triple net rents that is selling for 1,400,000.00. How much do you need to charge per square foot to get a 9% cap rate?
4. How much rent would you have to charge if you have taxes of 3,000.00 rent of 900.00, maintenance of 2,500.00 and you pay 100,000.00 for the property and you want an 8% cap rate.
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