Question
I want to buy a rental property for $300,000. I believe the NOI(net operating income) will be 30,000 a year. I plan to leverage 2/3rd
I want to buy a rental property for $300,000. I believe the NOI(net operating income) will be 30,000 a year. I plan to leverage 2/3rd and use equity of 1/3rd. The interest rate the bank is charge is 8%. The Tax rate is 25%. I plan to hold for 10 years and hope to sell in year 10 at $300,000. I need base case NPV and IRR and need to know what if NOI is 10% higher and 10% lower. And, what if the economy changes and NOI is 10% higher plus interest rates are 4% OR NOI is 10% lower plus interest rates are 10%. Assume Equity cost is zero. Full depreciation in 1sr year.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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