Question
Please help me find the following ratios and show the work so that I can learn how to complete these ratios on my own for
Please help me find the following ratios and show the work so that I can learn how to complete these ratios on my own for the other properties.I need to create a cash flow and I need to make sure that I use the terminal value and assume that there is a 5 year holding period, which has to account for the cost of the property today and also when it sells in 5 years.
1.Compute the cash flows
Gross rental Income
$148,516.00
Other Income
$-
Vacancy Loss
$7,426.00
Effective Gross Income
$141,090.00
Taxes
$6,956.00
Operating Expense
$44,947.00
Total Expenses
$51,903.00
Net Operating Income
$89,187.00
The fifth property is located at 2922 Hoyt Ave, Everett, WA 98201 and features an apartment complex with 15 units for a total of$749,000.The property is located minutes from new Everett water front development, navy base, downtown shopping and a bus line. The property is near the Boeing Everett factory, located 25 miles from Seattle, and 35 minutes away from restaurants, bars, and coffee shops with a walk score of 94.The expected cost of purchase is 606,690 $ (Purchase price $749,000 - Down payment $149,800 closing cost + $7490). Themonthly payment is $4,715, which consist of principal and interest $3,986, property tax $662 and insurance of $67.For the annual payment, $4,715 is multiplied by 12 to get the expected annual payment of $56,580.
Purchase price $749,0000
Expected cos to of purchase $606,690
Monthly payment $4715
Annual payment 56,580
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