MUST SHOW WORK IN EXCEL

Nitro's Office Park Property Assumptions: . . Purchase price: $5,450,000 Acquisition costs: $150,000 Year one potential rental income: $765,000 Vacancy and credit losses: 7 percent Other income: $29,000 Year one operating expenses: $310,000 Financing Assumptions: . . Loan amount: the loan will be the lesser of the amounts calculated using LTV ratio and DSCR and rounded down to the nearest thousand Maximum LTV ratio: 65 percent Minimum DSCR: 1.36 Minimum DYR 9.85% Interest rate: 5.45 percent Amortization period: 20 years Loan term: 7 years Loan costs Lender's discount points: 1.3 percent of loan amount Third party costs: $25,000 . O O Given this information calculated your year 1 cash flows, initial equity investment and the following ratios: Going-in Cap rate, Cash-on-cash, EGIM, OER, DCR, and DYR. Is the project able to receive financing? Explain why it is either able to or not able to be financed