Property is generating 1.7 million in PGI (assume no vacancy) and NOI of 1 million.It is being bought based on a cap rate derived from question 6.The purchaser will obtain a mortgage of 65% of value.The interest rate will be 4.25% based on a 30 year amortization schedule.

1)What is the value?

2)What is the loan amount?

3)What is the Debt Yield?

4)What is the DSCR?

5)What is the break-even calculation

6)Band of investments: Given information above and the fact that equity returns are currently 8%, what cap rate would be derived from this information.