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Please provide answers based on the following numbers of a real estate property. What can you tell about the cash flows and are there any
Please provide answers based on the following numbers of a real estate property.
Unleveraged Performance Metrics \begin{tabular}{|l|r|} \hline Cap Rate at Purchase (Yr 1) & 7.00% \\ \hline Cap Rate at Sale (Yr 5) & 7.50% \\ \hline Unleveraged IRR & 14.62% \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Leveraged Performance Metrics } \\ \hline Leveraged IRR & 22.26% \\ \hline Cash-on-Cash & \\ \hline \end{tabular} \begin{tabular}{|l|rr|} \hline \multicolumn{2}{|c|}{ Mortgage Details } \\ \hline Max Loan Amount & $ & 3,271,669.77 \\ \hline Loan Payment Monthly & $ & (24,177.35) \\ \hline Annual Debt Service & $ & (290,128.21) \\ \hline Payoff Year Amount & $ & 3,001,186.10 \\ \hline \end{tabular} \begin{tabular}{|l|rr|} \hline \multicolumn{2}{|c|}{ Mortgage Sizing Calculations } \\ \hline Loan Payment W/ LTV & $ & (28,714.58) \\ \hline Loan Payment W/ DSCR & $ & (24,177.35) \\ \hline DSCR Max Loan Amount & $ & 3,271,669.77 \\ \hline LTV Max Loan Amount & $ & 3,885,645.69 \\ \hline \end{tabular} Unleveraged Performance Metrics \begin{tabular}{|l|r|} \hline Cap Rate at Purchase (Yr 1) & 7.00% \\ \hline Cap Rate at Sale (Yr 5) & 7.50% \\ \hline Unleveraged IRR & 14.62% \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Leveraged Performance Metrics } \\ \hline Leveraged IRR & 22.26% \\ \hline Cash-on-Cash & \\ \hline \end{tabular} \begin{tabular}{|l|rr|} \hline \multicolumn{2}{|c|}{ Mortgage Details } \\ \hline Max Loan Amount & $ & 3,271,669.77 \\ \hline Loan Payment Monthly & $ & (24,177.35) \\ \hline Annual Debt Service & $ & (290,128.21) \\ \hline Payoff Year Amount & $ & 3,001,186.10 \\ \hline \end{tabular} \begin{tabular}{|l|rr|} \hline \multicolumn{2}{|c|}{ Mortgage Sizing Calculations } \\ \hline Loan Payment W/ LTV & $ & (28,714.58) \\ \hline Loan Payment W/ DSCR & $ & (24,177.35) \\ \hline DSCR Max Loan Amount & $ & 3,271,669.77 \\ \hline LTV Max Loan Amount & $ & 3,885,645.69 \\ \hline \end{tabular} What can you tell about the cash flows and are there any risks or rewards? low risk? high risk?
Would you buy this property? why or why not?
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