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Mrs. Johnson is considering buying a property for $2,900,000 with estimated acquisition costs of $37,000. She plans to use $2,000,000 in debt financing which has
Mrs. Johnson is considering buying a property for $2,900,000 with estimated acquisition costs of $37,000. She plans to use $2,000,000 in debt financing which has loan costs of $40,000 and the annual debt service is $185,333. The forecast for year 1 NOI is $250,000. Mrs. Johnsons forecast cash on cash return for year one is:
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